Guest Post by Nick Giambruno
Central banking is “a great business to be in, where you print money, and people believe it.”
That’s what the head of New Zealand’s central bank said recently in an unscripted moment of candor.
It led me to wonder about the nature of this strange “business.”
Let me put it into the simplest and most concise terms.
- Central banks create fake money out of thin air and loan it to governments at interest.
- Governments use violence and threats of violence to extract taxes from average citizens to pay the interest on the fake money the central banks created out of thin air.
- Like the mafia, they can deploy violence to ensure there is no competition to their privileged racket.
That’s the unvarnished truth about central banking.
Continue reading “The “Business” of Central Banking—Usury and Tax Farming”