Central banks...

[Atomic12C]

Central banks have taken a lot of flack since they were first created in the UK and USA.

A central bank creates money and issues it back to government with interest.

But why don't we employ a system whereby we do away with central banks and governments create their own money without the need to pay interest on it?
This would go a long way towards stifling inflation and constantly reducing the value of earnings and savings, no?

[grumbledoak]

A Scottish invention, I think. It is true we don't need them. America was originally not supposed to have one. It didn't last. People who want power want powerful institutions to exist. So they create them.

[The Vambo]

Atomic12C said:

Central banks have taken a lot of flack since they were first created in the UK and USA.

A central bank creates money and issues it back to government with interest.

But why don't we employ a system whereby we do away with central banks and governments create their own money without the need to pay interest on it?
This would go a long way towards stifling inflation and constantly reducing the value of earnings and savings, no?

Isnt that why JFK was shot?

[Atomic12C]

The Vambo said:

Isnt that why JFK was shot?

And possibly Abraham Lincoln?

[trickywoo]

Free money you say? I'm in.

Until of course because its free it has no value and you are wheel barrowing cash to the supermarket to buy a loaf of bread.

Fundamentally its all a confidence trick but as long as the current system kind of works you may as well go along with it.

[Adam B]

Atomic12C said:

But why don't we employ a system whereby we do away with central banks and governments create their own money without the need to pay interest on it?
This would go a long way towards stifling inflation and constantly reducing the value of earnings and savings, no?

hmmm

you have just described a form of QE, this increases inflation not decreases it - and provided you earnings go up in line with inflation a bit of it is a very good thing as it reduces the real value of your debts eg mortgage