Hacker News Reader

Comment by UncleEntity | Hacker News Reader

> ...a central authority is required to protect the value of currency. that is why central bank prints money and does QE.

So, what you're saying is they protect the value of a currency by devaluing it?

> it is not a conspiracy to enrich some cronies. without central authority, it cannot function as currency.

No, it's a conspiracy to tax the population without actually taxing them through devaluing the currency (aka inflation). Enriching some cronies is merely a side effect that keeps the bankers in line (and, more importantly, in the cartel) since they profit handsomely through fractional reserve banking and debt monetization -- neither of which is possible "without central authority".

View on HN

> So, what you're saying is they protect the value of a currency by devaluing it?

A central banks job is to stabilize the currency and the relevant economy. Controlling liquidity and interest rates are two tools to affect this change. Side effects of which are controlling the rate of inflation.

Stability is the key for a currency at global level.

But don't take my word for it:

"The Board of Governors of the Federal Reserve System and the Federal Open Market Committee shall maintain long run growth of the monetary and credit aggregates commensurate with the economy's long run potential to increase production, so as to promote effectively the goals of maximum employment, stable prices, and moderate long-term interest rates."

https://www.federalreserve.gov/aboutthefed/section2a.htm

Sure, I know what they claim to do. My assertion is they in fact do something entirely different while using propaganda to tell you what they want you to think they do.

But, anyhoo, totally off topic.

everyone gets taxed in the scheme, even the board of governors at the fed, so whats your point? who benefits? government tax income increases? so what? does fed get a pay raise everytime they do this? you are really over your head.

Well, you see, people have this aversion to taxes and if they knew exactly how much they are paying they might start to get a little upset. So governments came up with this scheme to hide how much they tax them so they don't upset the people.

Not even to mention the negative effects inflationary policies have on the factors of production but, as you're some kind of expert, I obviously don't have to.

I really should know better than to try to discuss economic issues with someone who can't even manage to use a shift key but, as the say, "someone is wrong on the internet."

Reply on news.ycombinator.com