The Big Gunt on Nostr: A Central Bank functions as a lender of last resort to all the other banks: It can ...

A Central Bank functions as a lender of last resort to all the other banks: It can prevent bank runs by bailing out the smaller banks. Even worse, this practice is essential for a fiat monetary system to work at all. Without central banks, people would probably revolt, which would lead to civil wars. As Henry Ford put it, "It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning." A central bank also possesses a monopoly on increasing a country’s money supply. A way to enrich itself and the state for which it works. In other words, a way to keep the country’s citizens in check. Whoever controls the money supply controls the nation. Control of a money printer makes you a demi-god. Control of the master money printer makes you omnipotent. You can start enormous projects without ever having to pay for them. Ill-advised war efforts suddenly become affordable and even lucrative. By diluting the value of everyone else’s time and efforts, a Central Bank controls everything. knutsvanholm (npub1jt9…la9y)