Basically by having an independent Central Bank, a country's people surrender their democratic power to determine monetary policy in favor of a cabal of bankers. The idea that the FED or any other "Central Bank" is an independent arbiter of money stuff in an angelical cloud is one of the most naive illusions they ever sold people.
The only thing an independent central bank is independent from, is from the democratic will.
Yeah, it's weird. More separation of powers stuff. The intent is to be insulated from politics but not entirely divorced from the will of the people. As Calvin said, a good compromise leaves everyone mad.
The Fed chair is appointed by the President and confirmed by the Senate. It's arm's length, to be sure, but I don't think most people would want too much more direct involvement.
The people, generally, have no understanding of monetary policy either in theory or practice. It's a good thing the Fed isn't at the beck and call of the people.
So, we surrender monetary policy to the bankers and just pray they don't do stuff on their benefit while fucking us?
That's exactly how we got here, in the precipice of a financial crisis that everyone is pretending not to see so we can keep the ponzi scheme running a bit more.
The people have no understanding of a lot of other stuff. That's why we use a REPRESENTATIVE democracy system, not a direct one.
Is it perfect? not.
Not really. It’s similar to a public authority. Owned and governed by the federal government, but somewhat insulated from the day to day.
It makes sense. Just as you don’t want the state sweeping bridge tolls into the governments general fund, you don’t want the whims of the executive futzing with money.
