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Comment by chatterhead | Hacker News Reader

Don't be fooled, the central in "Central Banking" is about decision making power and profit. The losses are all distributed.

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And how is the profit distributed?

If you live in Europe, and specially US, you are already part of the shareholders and will profit from it (on average). More or less than other actors in the country, but definitely more than those ones not being under these central banks policies.

Cantillon effect says it's just a matter of how "close to money" you are. So living under a central bank is good, but borrowing directly from one is best.

Has anyone created an alternative banking system that is only using central bank money and skips over commercial banks completely?

I swear people have no clue how banking works.

China is on the way to doing exactly this. There are plans for an Indian equivalent but it's less likely to happen

No, you won't profit from it. The people who profit are the member banks. Federal Reserve is an organization made up of member banks. Those banks make money off of interest and investments. The losses are distributed among the masses through dilution of our currency through the necessary expansion of it to absorb the losses.

No amount of annual profit returned to the Treasury has ever outweighed the negative effect of Fed induced business cycles and bailouts.

Tell me why exactly do you need to take the medium of exchange hostage like people take housing hostage as a speculative investment?

Money is there to be used for transactions. Using money to save is literally the opposite how you are supposed to use it.

If anything, people witholding the medium of exchange against interest are what is causing business cycles and bailouts.

It's also used as a store of value and unit of account. That's the purpose of money. You don't understand it because you haven't learned about it yet.

Was there ever a year when FED actually lost money?

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