It is because when a bank creates currency through loans the interest has to be paid by the debter, which is a normal citizen (it's not a government's problem). So why would the centralized system care about the problem of an individual? Unless all the demand for interest generated through loans creates a deflationary system that goes against the inflation strategy. But, even if that was to be true, the government could simply create currency without interest to counterbalance that effect. Why aren't they doing that?
Aha! Your understanding is growing in leaps and bounds! That is a FANTASTIC question. I've talked to Bill Still and he proposes that exactly, take the power away from the banks and have "positive money" created by the treasury of the government. He produced a multi award winning documentary series called "The Money Masters" which is exceptional for the beginner. I suggest you watch it, you'll really love it and I am sure you'll come back raving all about it. Now to your question. The dark dark truth. All central banks are controlled by private interest for their benefit. This cabal actually controls nearly everything believe it or not. It is the hidden hand that controls both the system and a system within a system. The system is what you see on the surface Government, banks, lawyers, doctors etc. But these guys belong to "groups" and are sworn to secrecy to protect their members and further their agenda from a top down pyramid structure. You get to move up ranks based on your ability to lie flawlessly and serve the cause. And it's institutionalized, the thing is it's been here for many centuries. From "the brotherhood of man" Rhodes scholarship program to your run of the mill freemason. Anyone that has sort to improve the plight of the average person like Lincoln and his introduction of positive money "greenbacks" or JFK with his EO11110 and his silver certificates has been killed. Even the attempt of President Andrew Jackson who ran on the title of "No Central Bank" who openly knew and pointed the finger at the bankers. Since then the system has become totally and utterly under their control, they have turn people against Christ and society of honesty has turn into a totalitarian nightmare where people sadly have few morals and are easily corrupted. Basically the government is not there to serve the people any longer but to keep them under control like a nanny but with murderous powers and the only "authority" to use violence and kidnap against people. Watch the money masters. [youtube]http://www.youtube.com/watch?v=EeIM-4hJO44[/youtube]
http://www.reuters.com/article/2014...EN20140605?feedType=RSS&feedName=businessNews It is happening. Negative rates is just another way to maintain and delay collapse. It is also the first step to change without collapse. Pirocco: Your comments are heavily weighted within current economic rules. These fundamental rules is what I am saying needs to change.