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Thread: Why all countries have central banks?

  1. #1

    Why all countries have central banks?

    If central bank and fiat money are such pieces of crap, then why there is not a single western country without a central bank or fiat money? There has to be a reason!



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  3. #2
    I am not sure about all cases, but it would seem that it makes it easier for governments to borrow and spend and regulate their economy.

  4. #3
    My history teacher told me modern capitalism is based off a central bank and that its proven to be needed in a capitalist country

  5. #4
    Simple...power and control.

  6. #5
    http://en.wikipedia.org/wiki/Bretton_Woods_System

    The Bretton Woods system of monetary management established the rules for commercial and financial relations among the world's major industrial states in the mid 20th century. The Bretton Woods system was the first example of a fully negotiated monetary order intended to govern monetary relations among independent nation-states.

    Preparing to rebuild the international economic system as World War II was still raging, 730 delegates from all 44 Allied nations gathered at the Mount Washington Hotel in Bretton Woods, New Hampshire, United States, for the United Nations Monetary and Financial Conference. The delegates deliberated upon and signed the Bretton Woods Agreements during the first three weeks of July 1944.

    Setting up a system of rules, institutions, and procedures to regulate the international monetary system, the planners at Bretton Woods established the International Monetary Fund (IMF) and the International Bank for Reconstruction and Development (IBRD), which today is part of the World Bank Group. These organizations became operational in 1945 after a sufficient number of countries had ratified the agreement.

    The chief features of the Bretton Woods system were an obligation for each country to adopt a monetary policy that maintained the exchange rate of its currency within a fixed value—plus or minus one percent—in terms of gold and the ability of the IMF to bridge temporary imbalances of payments.

    On August 15, 1971, the United States unilaterally terminated convertibility of the dollar to gold. This action, referred to as the Nixon shock, created the situation in which the United States dollar became the sole backing of currencies and a reserve currency for the member states.
    just 'cause everyone's doing it doesn't mean it's good for you.
    Last edited by Nate-ForLiberty; 11-28-2010 at 05:05 PM.

  7. #6
    Quote Originally Posted by eugenekop View Post
    If central bank and fiat money are such pieces of crap, then why there is not a single western country without a central bank or fiat money? There has to be a reason!
    There is a reason, and many people have pointed you in the right direction to learn.

    The short answer is: The elite who profit from the creation of central banks own ~ 1/3 of the wealth of the world. This is by design. They did not start out owning that much wealth, it has taken ~ 100 years, and until we stop these transfers of wealth, they will keep taking.

    Watch, read and learn. Eustace Mullins - "The Secret of the Federal Reserve"
    "Everyone who believes in freedom must work diligently for sound money, fully redeemable. Nothing else is compatible with the humanitarian goals of peace and prosperity." -- Ron Paul

    Brother Jonathan

  8. #7
    Quote Originally Posted by thehighwaymanq View Post
    My history teacher told me modern capitalism is based off a central bank and that its proven to be needed in a capitalist country
    your history teacher sucks.

  9. #8
    The short answer is: The elite who profit from the creation of central banks own ~ 1/3 of the wealth of the world.
    Which elite? I don't see how Bill Gates or Warren Buffer for instance benefit from the central bank. It weakens the dollar (therefore making export more expensive), and it creates depressions in the economy from which big corporations suffer a lot.



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  11. #9
    Quote Originally Posted by eugenekop View Post
    Which elite? I don't see how Bill Gates or Warren Buffer for instance benefit from the central bank. It weakens the dollar (therefore making export more expensive), and it creates depressions in the economy from which big corporations suffer a lot.
    read: http://en.wikipedia.org/wiki/Bretton_Woods_System

    Bill Gates and Warren Buffet are not "The Elite". kill the TV

  12. #10
    Quote Originally Posted by eugenekop View Post
    Which elite? I don't see how Bill Gates or Warren Buffer for instance benefit from the central bank. It weakens the dollar (therefore making export more expensive), and it creates depressions in the economy from which big corporations suffer a lot.
    Evelyn Rothschild, David Rockefeller, et al.
    "Everyone who believes in freedom must work diligently for sound money, fully redeemable. Nothing else is compatible with the humanitarian goals of peace and prosperity." -- Ron Paul

    Brother Jonathan

  13. #11
    Quote Originally Posted by Nate-ForLiberty View Post
    your history teacher sucks.

    LMAO! Agreed +rep



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