Crime Against Humanity: “National”, “Federal”, “Central” Banking, 15
This means that once reached cruising speed the central bank has unfettered and absolutely unaccountable sovereignty over the money supply. No social, political or physical entity can scrutinise or undermine its absolute power to decide how much money when and to whom.
By the way, it has been said that among the basic vital duties of a true member of any group is never permitting anyone to exploit the mistakes and misdeeds of the few to discipline and enslave all; not surprisingly at all, a routine suppressive strategy is exactly that, and a typical case in point is that the bosses considerately foster the politicians’ penchant for stealing and wasting to not only indebt states with them, but also for building up the pretext and support for the idea that monetary sovereignty is not “safe” in the hands of politicians and governments, and that therefore – guess what? – it is “safer” in the totalitarian hands of the central bankers and their puppeteers. Some may call it: from the frying pan into the fire. Some others would call it entrusting the flock to the wolves to protect it from the jackals unleashed by the wolves.
So the central bank creates purchasing power out of nothing in the form of credit or banknotes, then buys something with it or lends it to other banks by crediting it to its reserve accounts under their names, and in the meantime dictates the fractional reserve ratio. The other banks create much more further purchasing power out of nothing in the form of credit within the limit dictated by fractional reserve ratio and their reserves at the central bank, then buy something with it or lend it to people. When people demand redemption of that credit in banknotes, the other banks draw on the credit in their central bank reserve accounts, and the central bank issues the corresponding banknotes out of nothing and reduces their credit in their reserve accounts accordingly. In short, the only constraint determining how much credit and money there are in existence is the arbitrary decision of the unaccountable central bank; and the only contstraint determining who is going to have how much of it is the arbitrary decision of each unaccountable bank.