Public opinion wrongly believes that Cental Banking is the domain of Government,this is not certainly not so, take the example of the story of the Bank of England
In 1694 William III was involved in a war with France, he needed money and he needed it in large quantities. The British coffers were empty so he asked for vast loans of money from a super-rich Englishman named William Paterson and some of his wealthy friends.
Paterson and his friends were perfectly agreeable to the loan providing they were allowed to do two things:
Since the Paterson bank notes were what the king would be loaned to build and equip his armies, he readily agreed. This gave legal sanction to a private bank being authorized to print bank notes as the legal tender for the whole nation.
Each bill promised to pay in gold on demand, but the bankers actually had only a small fraction of the gold needed to cover the vast quantity of bank notes being printed.
By this means the bankers brought the King in as a patron and beneficiary of a system of Fractionalized Banking or making money out of nothing.
Nevertheless, it gave the king what he needed, and it gave the bankers what they wanted, what did it matter if the bankers were making money out of nothing?
At least William would have the needed bank notes which merchants accepted as Money and so he could buy the mercenaries and needed armaments to carry on his war with France!
Governments take precisely the same attitude today, the King even went so far as to eliminate any possible competition for the so called Bank of England by giving Paterson and his friends an official charter from the Crown and commanding the goldsmiths of London to immediately discontinue issuing receipts as depositories for precious metals.
This drove most of the merchants to store their gold with the Bank of England.
So this was the means by which a privately owned bank became the official depository of the Crown, printed its own bank notes as the King's legal tender, and legalized its magic formula for making money out of nothing.
Much the same story can be told of the so called U.S. Federal Reserve.
On May 23, 1934, Congressman, Louis T. McFadden, brought formal charges against the Board of Governors of the Federal Reserve Bank system
And Australia has fared no better with Central Banking functions having been thwarted permanently by the powerful private banks, even the original CommonWealth Bank was never permitted to achieve the Central Bank functions that were desired by King O'Malley.
Equally deceptive and misunderstood is the function of Fiat Money
