Topic: Question on conflictual interest of central banks - page 2. (Read 1486 times)

So the board members take decision ?
I want to know more about them. They have way greater power than governments.

If they want to print money for some banks, but not for other they can.
So theorically they can allow whatever economic activity they like to thrive, or on the contrary prevent other to develop.

What if some of board members are also part of the board of private bank. Such person is able to kill its competitor by not granting more debt, or on the contrary stimulate his own bank.
Am I missing something ?


I'm not here to search for that, I just want to know how the internal decisions of central  banks are taken. But nevertheless I'll check out the course, thanks.

It's mainly the savers who get burned.  A low interest rate environment not only allows for the taking of higher risk but also necessitates it as the rate of return on "safe" investments fall below inflation.

Are you asking about history of central banking?

I suggest a coursera.org class on economics of banking taught by Merhling of Columbia U

QFT. The system works beautifully for the powerful. It is the average people that get burned.

Well it depends on the history and policy of each central bank.  In the case of the FED the US Congress could abolish it instantly by passing legislature and the federal reserve board members are appointed by the President.  The idea that the government can't do anything about it is just a farce.  However it goes back to why would the government want to abolish the Fed?  The debasement of money is in the best interest of debtors and the US government is the single largest debtor in the US, the world, and the history of mankind.  Why exactly would they want to eliminate a system which allows them to borrow a nearly unlimited amount of money at subsidized interest rates.  It is a symbiotic relationship.

I think I did not explained me well.
I'm not an expert, but know the theory behind the goal of the central bank. And I know how I can leverage the inflation to my advantage. (whether, there is inflation or deflation, it is just a matter of parameter for the well advised)

My question is : the people that controls the money supply hold more power than our own governments.
Who are they and how did they get the control ?
Is there anyway where I can find such information ? I want to know how these world impacting decisions are made.

Inflation isn't inherently bad for everyone.  If you are debtor and have fixed interest debt inflation is very good.  Imagine you have a house valued at $200,000, a $200,000 interest only mortgage and $50,000 salary with no other debt or assets.  You have a debt to income ratio of 400% and a net worth of $0.  Now imagine the fed inflates the dollar 10x in 2015 (or over some extended period of time).  In time the price of your wages will rise to $500,000 and the price of your house to $2M.  You now have a net worth of $1.8M and your debt to income ratio is now only 40%.

Now obviously the price of everything else would also rise so in real (inflation adjusted) terms you house is still only worth $200K (circa 2014 dollars) but your debt is only $20K (in 2014 dollars).  Your net worth is $180,000 in real terms and that is better than $0.  So inflation made you "rich" = improved your net worth.

Anytime the FED does anything there is a winner and a loser.  Debtors benefit from the debasement of money and the larger the debtor the more they benefit.  Who appoints the members of the Federal Reserve?  Hint it is the largest debtor in the US (and world).  What do you think would happen to a federal reserve board member if he advocated very high interest rates (which would hurt the ability of this world's largest debtor to continue to borrow insane amount of subsidized money)?

Banks benefit from the actions of central banks through a different process and that is the delayed effect of changes in the money supply on prices. 

I know that, my point is that they have trendemous power because they totally control the money supply.
Some people says that they do that for the interest of a fews, private bank holders.
Other, which believes in the system say they do everything to make the currency good for the citizens.

The question of this post is the following : those who claims central banks do not act in the interest of the citizens, but in the interest of private banks, what claim do they have ?
I am not taking sides, I know what is the power of the central banks, I just want to know their motivations.

So my question is : who controls the decisions of central banks ? Who controls the money supply ? And are those people linked to private banks ? (and so would work for their own interest)
And by who I mean real name, and how they got here.

You got the relationship wrong.

Central banks provide banking services to commercial banks.   Central banks were created to stabilize banking not as profit businesses

They are private but w govt oversight

European Central bank is public right ? it is public, but at the same times why does some people claims its interest are private's one.

You must first distinguish between private Central Banks such as the U.S. Federal Reserve Bank, and truly public Central Banks such as the Central Bank of Iran.

Lots of people believe (me included) that the root of our problem is that the central banks (be it fed or european central banks) are heavily affiliated with private banks.
Central banks should behaves in a way that benefit the users of their currency, but their affiliation encourage them to behave for the benefit of private banks.

My question is : Why do you think it is the case ? In central banks, how decisions are made and by whom ? What is the link (relationship) between these people and the private banks ?

Can you give me the names, and with evidences that back your claims ? (I always heard the Rotshild controls that, but at the same time people that claims such thing never prove it by linking their concrete roles into private banks and central banks)