Seems logical, but what's the difference between me loaning you $100 at an annualized 2% rate and saying "pay me back in a year" vs loaning you $100 every single day at an annualized 2% rate and saying "pay me back when the sun comes up." It's still a perpetual $100 loan.
You're right that the banks are no longer institutional risks to the global economy. They just transferred all that risk to the FED and the ECB. The amazing thing is the warp speed adoption rate of the idea that perpetual FED participation in the markets to the tune of trillions of dollars per year has been adopted as "business as usual." I mean, it is business as usual now. As long as your nose is above water you must be OK.
"So our interest rates don't climb." Is Exactly the reason. It's not "the market." The interest rates SHOULD climb. It would help savers, pensions and give proper return on capital. But it can't be allowed to climb because it would stop the new housing bubble, cause exploding government deficits at all levels and tank the dollar. That's the point. We are to an inflection point where even if the Overnight Lending Rate from bank to bank goes up to something resembling reasonable levels the entire economy will crash... if that weren't true the Fed wouldn't have to bail it out every night.
The Fed has been the one that caused every crash in the US. Now by your estimation the world bank is going to level the world financial markets. To me that does not sound like good financial policy except for those who are bleeding the US dry up to this point.
Shadow banking system
https://en.wikipedia.org/wiki/Shadow_banking_system#cite_note-15I understand. But that's like saying churches are greedy, the press is manipulative or governments charge too much in taxes. This misunderstanding isn't that the Fed (or government) controls made up money. The misunderstanding is that it hasn't always been the case. 1000 years ago gold was money ... so people think gold is somehow "real" money. But the reality is that the Government at that time owned and controlled all gold mining. Gold is a fairly useless metal. Previous to electronics it was completely useless. The only unique characteristic it had was that it's only found in certain places. Therefore it's easy to control production (if you are the King). So Gold was MADE INTO money even though gold has no worth whatsoever.
Iron couldn't be money, it's too easy for peasants for find on their own. Other objects were used as money but they were rare in one area (obsidian for instance) so it was traded for something that was rare in other areas. Prior to gold being money the king controlled the GRAIN, so worth was measured in bags of barley. That was only true because you had to bring your barley to the king's storehouse or be killed (or run off your land).
When economies became complicated Gold was used. Think of Gold - in those days - as SOVEREIGN WEALTH - The king of one country could use it to pay the king of ANOTHER country to avoid being invaded, or to buy something of worth. SOVEREIGNS controlled the production and distribution of gold. They used it internally to control the population and they used it as an accepted measure of state to state transfers of wealth.
Fast forward a couple thousand years and the same is true of money. The rag used for making dollars actually has more intrinsic value than gold did 2000 years ago. You can make a pair of paints out of cotton. They couldn't make anything useful out of gold. It's a way to control the population and it's used for state to state transfers of weath (at least the dollar is).
The future is digital money, not gold. I know that gold has value now that goes up and down, but that's only because it's a relic of a bygone age.
You can control 100 people with 1 soldier. You can control 1,000 people with one priest. You can control 10,000 people with one banker. The illusion is that you have freedom to choose... not that fiat currencies are or aren't real money. You can "BUY" gold with what? not goats... not seashells.. with dollars. And you can "SELL" gold for what? buckets of rice? Nope... Dollars. So gold is just a commodity that goes up and down relative to real money, which is dollars. Just like oil goes up and down. The price of a bottle of Bourbon goes up or down. Etc.
Here's the best example of that... you are allowed to elect who? Politicians. That's all. You can choose between Predigested choice A or predigested choice B. That's it! Their terms are limited. Their powers are limited. They have rules and regulations to follow. They get trotted out on TV to talk... We cheer or Boo.. just like in the Coliseum. You don't get to choose the money. You don't get to choose the financial instruments. You don't get to choose to have the 1% not be the 1% anymore. You can change the president all you want it will be a PEACEFUL transition of power. Try to change the Banks. Try to change the people who control the money and there will be PEACEFUL transfer of anything. The only transfer of power of money is a violent transfer of power. Because the President may be the top of our political pyramid but he is the bottom of the inverted money pyramid. He needs them. They don't need him.
I'm a prepper. A no-joke, too smart to be shown on TV, prepper. I have food, fuel, water, guns, livestock, security protocols... even an EMP proof truck. But that's all just for fun. Because there will always be local government, local control, local guys who have the right to shoot you but you don't have the right to shoot back. The only thing the system will not let fail... is the system. Everything else is negotiable... from your life to your land to your freedom to the name of the country or the name of the money. When the alien overlords arrive CNN and the Republicans and Democrats will say, "All hail the alien overlords" as long as they get to keep their status.
To return to your point... the only ones being bled dry are the PEOPLE. Not the people in power. That's no different than it was with gold, barley, or anything else. Work... if you stop then you will be cut off from the stuff you need to live (in this case money)... have babies... fight in a war if we say so... if you're a good, obedient subject then you will be given a greater share as long as it's useful for us.. then you will be laid off and someone else's kid will be brought in to replace you. The U.S. and western societies right now are the most benign controllers in history... but make no mistake, THEY aren't being bled at all. You are.
(I love talking about this stuff.)
