For some reason I haven’t run across anything on the net which delineates the business model of a private central bank, so I’m going to dive right in. Feel free to comment/correct me. It seems to me there are at least 3 ways that private central banks rake in the profits for their shareholders.
- interest on the “national debt”. about $400B/yr for the holders of us treasuries, including the shareholders of the “fed”. All entirely optional. Morally speaking, every debt-based dollar in circulation must represent debt owed to the government (i.e. “the people”), not to the banks, because the government is the sole institution with the moral right to create money. If this obvious fact was ever acknowledged in government policy, the national debt would disappear overnight. See monetary.org
- deliberate creation of booms and busts. they pre-position their assets to take advantage of the economic policies they formulate in secret. it’s a matter of public record that the “fed” caused the great depression by removing about 30% of money from circulation. The resulting desperation allowed its shareholders and groupies to buy much of the country for pennies on the dollar while forcing a mass migration to the cities by newly impoverished farmers and everyone employed in the regional economies that depended on them. It was truly a Great Ripoff. In the present day, it was greenspan’s megabubble, coordinated with the malfeasance of the credit rating agencies and bush’s obstruction of investigations into predatory lending that created the housing bubble which crashed the economy. this was an economic false flag designed to create a new ripoff scenario.
- war. central banks are in the business of loaning money to governments, and there’s no faster way to generate demand for such loans than war. unlike education, infrastructure and the like, which generate positive returns and increased economic output over the long term, war is an economic black hole. Every dollar spent on war is wasted in terms of economic opportunity. Given enough such economic hemorrhaging, there’s no danger that the loan will ever be paid off, ensuring a continuous stream of interest payments, and if the government defaults, the shareholders get to trade their government bonds for real assets like national parks and highways. War is also useful in reining in stray nations that attempt to exit the dollar system, such as iraq and libya.
One more thing: it is in the interests of the private central banks to have another world war. The more devastating the better. They need to so traumatize the public that the widespread and growing knowledge of how their scam works and how to fix the system is erased from the culture.