[Skybird]

^ "The FED could loose its independence."


What...? It were politicians/governments founding central banks, after the precedental founding of the bank of England. Central banks serve the purpose governments have assigned to them, and they do it from beginning on: they inflate currency in circulation so that politicians have the play money to bribe voters to elect them by making unsustainable promises that int he long run are beyond the national economy's reach to support. Or to finance war: it was the debts from the Napoleonic war that led to the forming up of private lenders that later became legitimately the "Bank of Enland" and then more and dropped under governmental control and legislation over the cause of three decades. Other central banks skipped that foreplay and immediately founded them as an extension of the government structure.



No central bank has ever been "independent", and never will be. Its chief staff is at the mercy of the government. Always. It does not take crime and violence to enforce compliance, though. Allowing self-enrichment and giving privileges and then hinting at that both can be cancelled, is enough. Centrla banbks are an extension of the state structure. They are an integrated part of the system.



Central bank cannot loose what they never had: "independence". They do not give orders endlessly - in the end they receive orders.



Neither the FED's nor the ECB's policies and their changes are surpising or unexpected. They truly fulfill their purpose for thwich they were founded. Independence was not part of that intention. Never.



See, the problem is when a state claism for itself the exclusive monopoly to mint coins and print banknotes. Thats were the misery begins. The other arch sin is fractional reserve banking, and a currency that is not backed 1:1 by tangible goods whose value is determined by the market, but can and is politically determined and influenced by government's interests and agendas. It is here when a moeny is no money anymore, but just a worthless currency. A counting unit of no intrinsic value. And over time, the buying value of each of these currencies tends to zero.