Most Americans know almost nothing of how central banking works, and this includes many (probably most by a large degree) very well educated and reasonably bright people. In fact, central banking, to the degree people are aware of it at all, appears of the realm of grey haired economic wizards. A world of shuffling shamans and completely incomprehensible.
The central bankers like that perception. They like the idea that people see them as “masters of the universe.” This image is cultivated, or at least has been.
In this opacity central banks operate as they wish, undermining the economy over and over and over, creating malinvestment and then economic downturns every decade or so. In the process some people do very well. That is, the people nearest to the central banks do very well. (Large commercial banks, government.) Most people, people without assets to leverage or in some cases without even stability enough to weather the inevitable economic storm suffer however.
Notice that the bankers for the most part did well in the last Crash. It was the poor and middle class who took it on the chin as they were furthest from the central banking system. In reaction many have looked to the state to save them from this system. But what many people, particularly newly minted “socialists” don’t understand is that the state undermines(ed) the creative destruction (and opportunity that comes with creative destruction) mechanism in the free market system. The state and the “management” of the economy is the reason for your economic suffering by and large, not “capitalism.”
But again, people see central banking as beyond their comprehension.
Central banks are instrumental for putting the ruler — or the ruling class — into a position where they can plunder the people on a grand scale and, by way of redistributing the loot, making a growing number of people financially and socially dependent on it…
…In practice, the central bank acts as a cartelizing agent: “to cartelize the private commercial banks, and to help them inflate money and credit together, pumping in reserves to the banks, and bailing them out if they get into trouble.”
One could substitute “ruling class” for crony class.
*END THE FED