Private vs Public Central Bank

>>1652542
>seize the printing presses

Or more accurately: Just seize the banks. It wouldn't change anything in the economy, people/companies would still have their savings, and the state is a more reliable creditor than any bank anyway.

>>1652542
You've conflated several questions:

There is no merit at all in the central bank being in private hands. Apart from the USA, every country in the world has either nationalised their central bank or had it in the public sector from the beginning. But too many Americans had such a strong ideological opposition to nationalization that governments have been afraid to do this.

Fractional reserve banking is not a problem because its critics (and some of its supporters) are ignorant about how it works. The amount a bank can afford to lend is totally unrelated to its reserves; the two actual limiting factors are the Basel capital requirements and finding customers they can profitably lend to. See http://www.bankofengland.co.uk/publications/Documents/quarterlybulletin/2014/qb14q1prereleasemoneycreation.pdf

Money gets borrowed into existence, but for government debt and a public sector central bank, that's just an accounting convention. They could change their accounting procedures and create money without debt, but there is an opportunity cost to money creation, and having debt on record makes it much easier to compare options.

Unfortunately, the public have fallen for the meme that governments must eventually pay off all their debt. Hence they advocate actions that are very harmful for the economy, in the mistaken belief that they're good for the economy.

And make no mistake, having debt readily available is a good thing. Having to rely on savings would often make it hard to start businesses, and even harder to expand them.

>>1652542
>central bank chartered by an act of congress
>governors all appointed by the president and confirmed by the senate
>"""private"""

Who keeps on repeating this dumb meme?

>>1652659
I think it is because the bottom half is private and hence the whole thing must be private.

https://upload.wikimedia.org/wikipedia/commons/1/1e/FederalReserve_System.png

File: japan roads .jpg (155KB, 938x1409px)

155KB, 938x1409px

>>1652542
Having a publicly owned central bank is how third world banana republics operate. The Fed is supposed to be nonpartisan and not influenced by politics.

Deflation is a helluva lot scarier than inflation and a lot more likely. (https://www.bloomberg.com/news/articles/2013-11-06/deflation-is-coming)

>>1653015
>Eurozone
>third world banana republic

>>1652659
On top of that, all profits from the fed go to the treasury.

>the fed made the USA $99 billion last year

>>1653658
>the fed "made" the USA

You mean printed?

>>1653015
>Having a publicly owned central bank is how third world banana republics operate.
Do you mean that third world banana republics would be unable to operate without a publicly owned central bank?

Or are you unaware that every central bank except the Fed is in public ownership?

>The Fed is supposed to be nonpartisan and not influenced by politics.
...As are a lot of publicly owned central banks. Though whether this independence of operation is a genuine advantage is debatable.

Deflation can always be counteracted easily. Inflation can always be counteracted, but doing so is not always easy.