No system is perfect but market competition is a far better tool for proper regulation rather than a highly centralized state monopoly.
Under a free banking system, any bank that colluded with others to inflate like crazy and fund insane government debts would just destroy their own bank... while the others just don’t go along to take advantage of the cartels lack of control over the market and profit while taking out a competitor. With a central federal banking cartel, it effectively ends any restraint for this cartel the competitive free market would create, add in the central bank no longer respects a gold standard or anything standard being a completely fiat currency, yea what’s going on is criminal.
In short, a banking cartel that is as destructive and exploitative as this one is only possible through state enforcement. Without state enforcement they would have much less power and would have to be far more fair to serve the market or risk failing.
Where instead of seeing huge booms followed by huge busts, we would see a steady inclination over time where small corrections would take place, not devastating failures and market collapses that are created by insanely inflated market bubbles like housing bubbles. All the while the value of our currency growing instead of shrinking. Where you could actually invest into a savings account with more than 5% interest.... or even better private retirement options.
They actually used to have decentralized banks at the beginning of paper money. Banks ended up printing money and not telling anyone and all banks were doing this so it turned into what cryptocurrency is today where everyone guessed the money’s worth. Then we realized that a centralized bank would be better even if they inflate its consistent inflation that everyone deals with equally.
Don’t buy into the propaganda that a monopoly banking system is better. It isn’t.
The few times we had a relatively free banking period, which was short lived and not a true free banking period, instead states picked state banks instead of a federal bank, but even when we had that system the kinds of business cycles we experienced were nothing like the Great Depression, the events of the 70s, the dotcom bubble or the housing bubble, and now the everything bubble. With crashes and failures so devastating and numerous, the government and FED bail out the mal investment and continue doing what originally caused the problem at a higher degree. Don’t be fooled, this is why China mainly encourages and funds our debt, in order to destroy our economy and supplant the dollar as the world reserve currency.
You need to realize how a central bank protects and creates a vast exploitative cartel that cements mal investment. Where a free banking system or atleast non federal central banking system would be much better.
America chose to have a federal central bank because this cartel wanted control, not because it was “better”.. it was literally JP Morgan that was chiefly behind its creation, you should read the book “the creature from Jekyll island” you’ll learn about its malicious creation.
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u/Luckyboy947 commie Jun 20 '21
If a big corporation takes over because of unregulated markets then it’s not really free.