"Politics is the loom that weaves and spins the fabric of our democratic social cohesion. The politics of democracy is the social blanket that we all willingly come together under, huddled awkwardly, for our national identity. The interwoven threads of multi-media, technology, financial, and shared social myths bind this political blanket into our national identity as a democratic republic.
When the democratic political process has been stealthy co-opted over many years by financialization, which seamlessly connects the financial industry and the government, we become members of a fascist form of state (inverted totalitarianism), without collectively knowing it yet."
Joe, the Angry Hawaiian
The financial system in its existing form is excessively arbitrary and non-transparent.
An external standard provides a flywheel, which prevents the expansion of the money supply at the discretion of a central authority that also has the power to monetize debt and set interest rates, within some longer term limitations.
In its worst form, short of an overt tyranny, the central banking power has the ability to create money at will, and distribute as they see fit, to their cronies, for whom they are also a powerful friend and regulator governed by a self-defined class that moves freely between government and the financial industry.
This is the precise reason why President Andrew Jackson vetoed the Second Bank of the United States. The Banks speculated in the goods of the nation, keeping the profits, but using the power of their Central Bank to shift the losses to the public.
And this is the story of the serial bubbles we have been seeing since the 1990s.
Would it be 'better' to merely shift the power to create money at will from the Fed to the Treasury, and eliminate the issuance of debt? Hardly. There are other ways to accomplish this that do not count upon men being as selfless and wise as angels, which may exist as a theory, but has proven to be a terrible folly in all real world situations in which it has been tried.
Have a pleasant evening.
