Functions of a Central Bank
Among the Functions of a Central Bank Are Stabilization of the Currency and the Supply of Money, but They Are Also to Create Economic Instability.
The functions of a central bank the ability to control interest rates on loans which then either promote or restrict lending, to manage inflation and deflation, and, by proxy, to manage the exchange rates for currencies.
There are two types of central banking systems, one which is publicly run and the other which is privately operated.
The difference between the two is that public central banks are shells and private central banks are the ones who really run things.
A central bank is also considered a lender of last resort to the banking industry, which means they can save private banking institutions from collapse in times of economic recession or depression.
While this might sound like a positive thing, think about what this last resort lender has done to the U.S. economy.
The Fed and the U.S. government are interlinked, however, it is the Fed that has all the power in the relationship.
The Fed forces the U.S. government to borrow money at interest, and then, in turn, U.S. citizens have to pay off the loans via taxes.
The management of foreign exchange rates, gold reserves, and the government stock register are also among the functions of a central bank.
When all is said and done, it is the central bank, and not the government, that is responsible for the U.S. economy, which is why the functions of a central bank should not go unnoticed.
It is also why the global elite banking cabal owns and controls the Federal Reserve.
Monetary Policy
Central banking institutions are tasked with implementing national policies for monetary economics.
In the instances of nations who have their own national currency, the central bank issues a standardized currency in the form of promissory notes.
A promissory note is basically a promise to exchange the particular note for something of worth.
Traditionally, these were promises to exchange the note for precious metals based on a fixed amount.
However, many nations have adopted fiat currency systems, which simply means the promissory note is nothing more than a promise to exchange the note for equal worth in the same currency.
The fiat currency has damaged the value of money. The Federal Reserve and other central banks use the fiat currency to essentially create money out of nothing.
This is the perfect situation for them and why they do it. However, it enslaves the taxpaying citizens to eternal debt.
Central Banking Institutions
Most central banking institutions hold both assets and liabilities. These liabilities are outstanding currency which is backed by the asset holdings.
Profits are gained by trading currency notes for interest-generating assets like bonds.
The profit gained by the interest bearing bonds is called seignior-age.
Central banks often own government debt, and, in many nations, they also have significant holdings of foreign currencies as well as their own national currency, especially when their own currency is tied directly to other currencies.
Debt is Slavery
One of the main functions of a central bank is to keep the people as slaves. Debt is slavery, and central banks manage to keep people in debt.
As long as the Fed is in charge of making all the money, there will not be any escaping this. they will manage to stay in control, and thus, they will have the power.