The general belief among average citizens is that the purpose of central banks is to help the economy by fighting inflation and mitigating financial crisis. It’s a fairy tale that politicians like to encourage. If there were any truth to it, however, where was the Federal Reserve during the crisis of 2007? Rather than helping, it was widening the crisis with its easy money policies.
Central banks have never existed for the greater good. Their very purpose is to benefit the elite and those in power. Wealth inequality is a fact of life; however, the policies of central banks can exacerbate those inequities. The simple fact is people would be better off without the monetary manipulations of the central banks. The schemes of the central merely widen any income gap instead of closing it.
At this time, central banks have free reign over the economy. They can, in effect, do whatever they want. This unlimited power could be checked with the reinstitution of the gold standard, which would place the value of the currency at market value instead of artificial central bank whim. To quote economist Murray Rothbard, “[A]bolish the Federal Reserve System, and return to the gold standard, to a monetary system where a market-produced metal, such as gold, serves as the standard money, and not paper tickets printed by the Federal Reserve.”
President Trump’s Federal Reserve appointees are continuing the mistakes of the past. While all are cheering the economic boom, everyone is averting their eyes from the burgeoning debts that may soon come crashing down. And if it does come crashing, it will create a global chaos the world has not previously experienced.