Almost every nation has a central bank. The bank does three things: (1) it supplies the government with funds at low interest rates; (2) it limits the expansion of money by the commercial banks; (3) it bails out the largest banks when a banking crisis hits. It officially promotes the first two goals. It does not talk about the third.
Beginning in October 2008, the third task has become dominant in the United States and Europe. The main bailouts took place in the United States. Large European banks got lots of aid from the Federal Reserve, but this was done quietly. The FED concealed this from the public and Congress.
Europe is the scene of the latest crises. These show signs of becoming a permanent condition. The crises are escalating. Four groups are involved: (1) the European Union; (2) the individuals nations; (3) the European Central Bank; (4) the commercial banks.
No matter how tightly the by-laws are written for a tax-funded agency, some agency bureaucrat will exceed common sense in his attempt to follow the text.
The bureaucracy will back up the bureaucrat who does this until such time as there is a revolt by those funding the bureaucracy.
All bureaucracies seek to secure guaranteed future income from the taxpayers, no matter what the taxpayers say or do.
The taxpayers will finally revolt.
The taxpayers will revolt in Europe. The Eurocrats think they can gain sovereignty by getting legislators to agree to another treaty, once and for all. They can't.
