If the future is going to be organic adaptation and change driven by individuals and markets, there will be no place for central banks. From Alasdair Macleod at alasdairmacleod.substack.com:
Those talking of a great reset assume that it will be driven by governments and not markets. But if past failures are to be eliminated, what is the future of banking?
Surely, it is now apparent that central banks are guilty of mismanaging the economy. By slashing interest rates to zero and in some cases to an unnatural minus figure; then flooding financial systems with currency-level credit, followed by rapidly increasing interest rates in an attempt to stem the consequences central banks have bankrupted themselves and much of their entire economies.
Even though hapless economists and money managers are still in thrall to them, central banks have proved themselves to be unfit for their purpose. It is time for a new system based on true productive economic demand for credit without state interference. It is time to consider central banking versus free banking, given that with their losses on quantitative easing central banks are trading while insolvent — a criminal offence in the private sector for which directors would risk being jailed.
This article compares free banking under gold standards without central banks, and today’s fiat currency system which gives central banks the power of debasement. Commercial banking without central banks is the historical norm, and the evils of statist currency management is a more recent development.
England’s 1844 Bank Charter Act is the basis of central banking
Given that the Romans invented banking, and that Italian banks adopted the modern form of credit creation through double entry bookkeeping in the late-fifteenth century, commercial banking without central banking has a far longer history than with it.
While the Bank of England only existed as a central bank following the 1844 Bank Charter Act (it had for a long time previously operated as a commercial bank with the monopoly of the government’s business, which is not the same thing), and America’s Federal Reserve Board came into existence before the First World War, central banking per se spread more widely from then on, coinciding with the end of gold standards, particularly in Europe.
Central bank=half way to communism.
Read one about the thousands of local banks back in the day is now all centralized with a handful of YUGE banks.
Watching a video of CCP and the $3.2 billion real estate default, EV graveyards, and zipping alive people up in body bags during the COV-LARP as journalists get arrested never to be heard from again and state censors intercept all civilian reports that don’t follow the official narrative.
Tell me more about the egalitarian workers utopia and other fairytales.