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The creation of money has actually been in private hands since, well, forever. If we consider modern times – after the creation of the US Federal Reserve System in 1913 – one of the most common misconceptions in the masses is the belief that public institutions, such as the Fed or the ECB, are the only expression of public interest and that the creation of money is the exclusive prerogative of the sovereign "nation-states". Although it is so widely claimed – or simply conveniently believed – the truth is rather different.
Indeed, in addition to the fractional reserve banks – which allow commercial banks to create the largest part of the currency at broad sense in the system – the same well-known commercial banks, too big to fail, also have a substantial direct interest in the aforementioned institutions. Take the example of the ECB, its governance is officially in the hands of 6 members of the Executive Council and governors of each of the 19 national central banks of the Member States . So you might think that all this is politically approved by the democratically appointed governments of each member country. Well, not really.
In Italy for example – although it is the same for the other countries of the EU – the shareholders of the Banca d 'Italia are for most private banks or large insurance companies such as Unicredit, Intesa Sanpaolo and General Assicurazioni .
Although the situation is much more obscure in the United States, the concept is the same: the national banks have each of the 12 federal reserve banks which are then part of the EDF . As for which members of the 12 FRB, good luck finding them because it is quite difficult to find a lot of information. This seems to be a well kept secret.
Independently, there is a monopoly on the creation of money, which is attributed by governments to the private banking sector – though it is hidden by the appearance of the EDF and the ECB as independent authorities – and it is safeguarded by the same governments that legally support private trust funds and make them legal by decree, thus perpetuating the privileges of the banking sector.
In 1976, FA Hayek – Nobel laureate of economics in 1974 and one of the most prominent members of the ] Austrian School of Economics – wrote a pamphlet entitled " Denationalization of Money " , in which he foresaw the emergence of private funds that could compete with each other and against the monopolies of governments, which, in his words, has the shortcomings of all monopolies such as " " prevents the discovery of better methods to satisfy a need for which a monopolist has no motivation ".