Updated: 3 days ago
Some of the examples of central banks are Federal Reserve Bank of US (FED), Reserve Bank of India (RBI), European Central bank (ECB) of Europe,etc to name for readers to know. In today's world, the wealth of countries does not accrue to the people of that country, but to central banks. This article mentions some of the reasons why Central Banks eventually collapse the economies of the countries in which they operate, and enslave the people.
First of all, central banks are not bound by the constitution of the country in which they operate, so they are extralegal entities that dictate the financial state of the country. Brainwashing through the education-indoctrination system teaches that governments with their own sovereign money will cause economic distress; however the contrary is eventually proven in every case. Almost none of the central banks are audited, which begs the question "why are such entities are trusted at all?"
Central banks do not pay taxes. If everyone else is forced to pay taxes, why not the central banks?
It is said that the central banks provide liquidity to the a country as the buyers of last resort. How is that even possible? Currency is created in an arbitrary way, out of thin air as the phrase goes, creating a loan on which citizens must pay interest. This means that all currency created is based on debt and credit, not any actual wealth. There is no central vault in any central bank. If central banks alone create and loan currency, at interest, how can it ever be possible for a country to repay such a loan? Inherently central banks have to rely on some standard where every loan can be tallied. This is the reason why central banks still value gold, while projecting the notion that gold is not a store of wealth in the current era of fiat currencies on to the people.
In practice, private parties or corporations exist to maximize their profits, that is the sole purpose of private business. Central banks are no exception, and the reason they provide loans to governments, is to make a profit from the country given the loans. Politicians take loans to provide "free goods" to uninformed voters, making it easy to make a few politicians rich with the central banks providing convenient loans. In this fashion countries are entrapped in a scheme of ever increasing debt and eventually they default as ever more currency is created, and each currency unit created causes every previously created currency unit to lose value thus causing perpetual inflation. This can be clearly seen in India where governments give free money to different groups, farmers, women, etc to garner votes. Same thing in US where blacks, minorities, single moms, student loans etc are given special schemes thus increasing the inflation by taking more loans. Citizens who are receiving these loans never realise the bad effects on the economy and thus causing even bigger inflation. Thus people have to work perpetually till their death as the value of money erodes.
Inflation is an unseen way of devaluing purchasing power of the currency. Governments and central banks have a negative symbiotic relationship which leads to bankruptcy.
Apart from the central banks, we now have global banks like World Bank, IMF, European Union Bank, etc. which can now extend their reach internationally.
It is thus very important for the citizens to know how central banks work, acting as predators, with policies that inevitably have adverse consequences. It is better to have natural free money like gold, silver or virtually created currency like Bitcoin, purchase of farm land, and investing in your own small scale business. Since it is not possible to create an infinite number of these currency items at will, the rarity of real monetary items is better than currency created endlessly at will. Also it is highly recommended to have very less amount of cash in the banking system thus protecting their wealth and also not participating in government and central banking Ponzi schemes.
Governments ban actual money and prefer fiat currency so that people are not self sufficient, but actually eternally dependent on their government. For example, in India Gold is was not taxed but then Indian government started chargin 2%, then 6%, then 10% and now its 20% of the actual value. Also indian government charges 30% on Bitcoin profits. The reason of these taxes is to discourage people to own real money and instead depend on their money.
To avoid this circle of debt, there must be made a constitutional rule that government cannot give or take loans on behalf of its people. This way government cannot make a hostage its own country, or any other countries financially, by giving away cheap loans.
This is why in some religions like Christian and Muslim cultures Usury (giving loans) is considered a crime. After WW1, Germany was reeling under hyper-inflation because of bad policies of governments and predatory behavior of its central bank. Adolf Hitler ended the central bank and the interest based economy, issued their own currency, and within 3 years Germany was the most economically forward country in Europe.