The whole point of the federal reserve is so that no special interest can seize control and crash the US economy on purpose. It sets up a political entity with vast but very particular powers, that is accountable to the president, so that it is almost always in the best interest of big finance not to crash the economy. The US government pays the federal reserve system, which is just a bunch of banks who buy into it, about 7-8% roi, to manage the money supply. Sometimes more money can still be made by crashing the US economy, for example the subprime mortgage crisis of 2008, and technically recessions are pretty good for the ruling class predators, but for the most part it provides concrete financial incentives for major institutions to keep the whole thing on the rails. It protects the economy from rogue bankers who already wield an incredible about of undemocratic power, from doing something selfish that would harm the country.
No one considered the possibility of a rogue president who selfishly wants to crash the US economy because he thinks it will help him become king. In that case, if he gets the approval of fed reserve bank executives, then there’s nothing stopping him.
All these rules rooted to the notion of “well we can always count on the president to be a morally good and reasonable person” are incredibly naive. Are many governments like this?
The whole point of the federal reserve is so that no special interest can seize control and crash the US economy on purpose. It sets up a political entity with vast but very particular powers, that is accountable to the president, so that it is almost always in the best interest of big finance not to crash the economy. The US government pays the federal reserve system, which is just a bunch of banks who buy into it, about 7-8% roi, to manage the money supply. Sometimes more money can still be made by crashing the US economy, for example the subprime mortgage crisis of 2008, and technically recessions are pretty good for the ruling class predators, but for the most part it provides concrete financial incentives for major institutions to keep the whole thing on the rails. It protects the economy from rogue bankers who already wield an incredible about of undemocratic power, from doing something selfish that would harm the country.
No one considered the possibility of a rogue president who selfishly wants to crash the US economy because he thinks it will help him become king. In that case, if he gets the approval of fed reserve bank executives, then there’s nothing stopping him.
All these rules rooted to the notion of “well we can always count on the president to be a morally good and reasonable person” are incredibly naive. Are many governments like this?