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Central Bank Concept

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    So what is a Central Bank?
    A central bank is an institution that produces the currency of an entire nation.
    Two powers are inherent in central banking practice.
    1) The control on interest rates
    2) And the control of the money supply (Inflation)

    A central bank doesn't simply supply a nations economy with money, it loans it at interest. Then by increasing and decreasing the supply of money the central bank regulates the value of the currency being issued.
    It is critical to understand that the entire structure of this system can only produce one thing in the long run. Debt.

    It doesn't take a lot on ingenuity to figure this scam out. For every single pound produced by the central bank, is loaned at interest. That means every single pound produced is actually the pound plus a certain percent of debt that is based on that pound and since the central bank has monopoly over the production of the currency of the entire country and they loan each pound out with an immediate amount of interest attached to it, where does the money to pay for the debt come from?
    It can only come from the central bank again. which means that the central bank has to perpetually increase its money supply to temporarily cover the outstanding debt created which in turn, since that new money is loaned out at interest as well, creates even more debt! :facepalm:

    The end result of this system without fail is slavery for it is impossible for the Government and thus the public to ever come out of the self-generated debt.

    So if the central bank increases the money supply, resulting in extensive loans to smaller banks to the public. Then, they can call in mass percentages of the outstanding money supply thus resulting in supporting banks having to call in huge numbers of loans resulting in bankruptcy and collapse, further consolidating the monopoly of the central bank.

    Is is just me or is there a flaw in the system? :confused:
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    (Original post by Occams Chainsaw)
    Is is just me or is there a flaw in the system? :confused:
    Hard to say, since I suspect you've oversimplified this a great deal.
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    Banks are evil.
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    (Original post by Occams Chainsaw)
    So what is a Central Bank?
    A central bank is an institution that produces the currency of an entire nation.
    Two powers are inherent in central banking practice.
    1) The control on interest rates
    2) And the control of the money supply (Inflation)

    A central bank doesn't simply supply a nations economy with money, it loans it at interest. Then by increasing and decreasing the supply of money the central bank regulates the value of the currency being issued.
    It is critical to understand that the entire structure of this system can only produce one thing in the long run. Debt.

    It doesn't take a lot on ingenuity to figure this scam out. For every single pound produced by the central bank, is loaned at interest. That means every single pound produced is actually the pound plus a certain percent of debt that is based on that pound and since the central bank has monopoly over the production of the currency of the entire country and they loan each pound out with an immediate amount of interest attached to it, where does the money to pay for the debt come from?
    It can only come from the central bank again. which means that the central bank has to perpetually increase its money supply to temporarily cover the outstanding debt created which in turn, since that new money is loaned out at interest as well, creates even more debt! :facepalm:

    The end result of this system without fail is slavery for it is impossible for the Government and thus the public to ever come out of the self-generated debt.

    So if the central bank increases the money supply, resulting in extensive loans to smaller banks to the public. Then, they can call in mass percentages of the outstanding money supply thus resulting in supporting banks having to call in huge numbers of loans resulting in bankruptcy and collapse, further consolidating the monopoly of the central bank.

    Is is just me or is there a flaw in the system? :confused:
    That is not how the system works. Most of the money in use today is created by commercial banks banks when people take out loans, debt. Money is still tied to debt though.
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    To a certain extent, it is a scam. Everytime the government needs money, the bank gets profit. Without banks and this system, however, everytime the government would stupidly lose all its money (which they tend to do a lot these days), their employees would just not get paid and all basic services provided by them would collapse overnight.

    Banks allow a certain elasticity to our lives, not just through giving to the government but with our money as well. Think about how many people would get robbed if they just kept all their money in a safe in their house. Borrowing from banks is also essential to rapidly improve services, establishments, businesses, etc. Sure they charge interest, but that's only to compensate for the risk of the borrower not paying them back, which does happen sometimes.

    That said, I disagree with a "central bank," as every government should be supplied money from a differet bank. Otherwise some guy is gonna end up with a LOT of leverage...

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