But since fractional-reserve lending is profitable to bankers and government in the same way that counterfeiting is profitable to counterfeiters, we find ourselves saddled with a central bank to make sure the various costs of expanding the money supply are passed on to the poor and middle class.
The idea that central banks are independent from the governments that gave them life is a bad joke. Through their purchase of government debt obligations, central banks provide a convenient way for politicians to spend wildly on their pet projects — whether it's welfare for seniors or wars overseas — without having to raise taxes.
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