"Politics is the loom that weaves and spins the
fabric of our democratic social cohesion. The politics of democracy is the
social blanket that we all willingly come together under, huddled awkwardly,
for our national identity. The interwoven threads of multi-media, technology,
financial, and shared social myths bind this political blanket into our
national identity as a democratic republic.
When the democratic political process has been stealthy co-opted over many
years by financialization, which seamlessly connects the financial industry
and the government, we become members of a fascist form of state (inverted
totalitarianism), without collectively knowing it yet."
Joe, the Angry Hawaiian
The financial system in its existing form is excessively arbitrary and
non-transparent.
An external standard provides a flywheel, which prevents the expansion
of the money supply at the discretion of a central authority that also has
the power to monetize debt and set interest rates, within some longer term
limitations.
In its worst form, short of an overt tyranny, the central banking power has
the ability to create money at will, and distribute as they see fit,
to their cronies, for whom they are also a powerful friend and regulator
governed by a self-defined class that moves freely between government and the
financial industry.
This is the precise reason why President Andrew Jackson vetoed the Second
Bank of the United States. The Banks speculated in the goods of the
nation, keeping the profits, but using the power of their Central Bank to
shift the losses to the public.
And this is the story of the serial bubbles we have been seeing since the
1990s.
Would it be 'better' to merely shift the power to create money at will from
the Fed to the Treasury, and eliminate the issuance of debt?
Hardly. There are other ways to accomplish this that do not count upon
men being as selfless and wise as angels, which may exist as a theory,
but has proven to be a terrible folly in all real world situations in which
it has been tried.
Have a pleasant evening.
