Centralized banking IS banking run by the biggest banks themselves. One big private bank whose actions are confidential, yet has complete control over the currency and securitizes the entire banking system. Since when did you think that anything tied to government was not run by the biggest private interests they influenced?
Since when do banks have to be corrupt for-profit industries that, as Matt Taibbi said in 2010 in describing Goldman Sachs
"a great vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money"
...that literally rip everyone off. National governments, state governments, city governments, conservatives, liberals, anarchists, fascists, pensioners, investors, homeowners, 401k holders, taxpayers...everybody.
Banks should be a non-profit utility or service, just like your local municipal water company or the USPS. North Dakota has a non-profit state run bank that has managed to avoid crashing it's state economy or create massive asset bubbles on junk assets or tell investors they were buying AAA backed securities it privately knew were junk...
No, it's an argument against the government involving itself in even the most absurdly simple economic situations. If
Simplicity is irrelevant - the question is, should government be regulating xyz, or not. And the answer when it comes to the banks: of course, yes. Look at the history of bank crashes before the (flawed) creation of the Fed. Look at our 70 year history of crisis-free banking before the deregulation fetishists took over and repealed Glass Steagall. Look at other countries like Canada, that avoided the financial collapse in 2008 entirely, because they regulated their banks.
If the government had not forced themselves by law to trade a certain ratio of silver for a certain ratio of gold (and vice versa), they wouldn't have gotten themselves into the horrific situations they did.
Hardly. The problem was the banks were gambling with 60 to 1 debt-to-asset ratios. What would a backed currency have done to prevent that? Jack and squat, and Jack left town.
If the government had not forced themselves by law to trade a certain ratio of silver for a certain ratio of gold (and vice versa), they wouldn't have gotten themselves into the horrific situations they did.
Nevermind all the horrific stations we've had on a backed currency. Gold Bugging, like drinking drano to cure an ulcer, is the wrong cure for the disease. "Backed" currencies are subject to the same mass manipulation seen in commodities markets, which defeats the purpose of having a backed currency in the first place: having a stable monetary base free from wild fluctuations.
And I have yet to see any Bugs explain how the deal with the problem of hoarding. You switch to a gold, silver, or chicken backed currency, and the Waltons and Kochs will take their annual profits and buy gold. Doing so limits the publicly available supply of the metal, which increases the value of their existing holdings. This will then dramatically worsen income inequality, as the richest can afford to buy the most gold, increasing their own riches, whereas the working poor are especially screwed. And of course, this will lead to an ever-increasing price of gold (or silver or chickens), defeating the stated purpose of having a backed currency: a stable value on your money. Unless of course, a new and plentiful supply of gold is found to reduce the value of the hoarders - but that would also distort the value of money.
Local banks would be far more stable and would probably be based off a franchise system with networked multiple-commodity-based currency systems. A very few currency systems would come out on top; their value would be determined by their stability.
And when the system goes down, it wipes out everyone. Compared to FDIC, which protects the first $250,000 of any depositor. Hmm, which to chose, which to chose...protection or absolute ruin...