The answer is: the government of the United States of America.
The Bank of England is the central bank of the country that holds all the money. The Treasury is responsible for the minting. And the value of the currency is determined by the interest rates the government is able to attract from the private banks. Interest rates are a function of the number of banks, how well they’re capitalized, and how well the bankers are able to borrow and invest in goods and services. The interest rates determine the rate the government is allowed to borrow money. But, more importantly, they determine how much credit the government is allowed to issue.
Let’s be blunt about it. When you pay somebody to do something for you, it takes a certain number of people to go along and pay them for the opportunity to do that job. You can hire someone, and as long as you’re not breaking your law, you can hire other people to go along with them, too. These people (people) can create as much credit as you’ve ever had, and as much wealth as you have ever had. And you can borrow from them, and this creates credit for you. And what people want is to be able to borrow money from you whenever they want to spend that money.
So one set of rules governs the entire economy. Other rules govern the private banks that have the ability to pay interest to the government. I think that’s one of the reasons that the interest rates are so high. And it’s very clear from that that you don’t have a credit system without a central bank.
Now what happens if the interest rate is too low?
The economy then falls into a depression. But what the government doesn’t want is to cause a depression. They want a recovery, so they want to bring the economy up again by creating more credit and stimulating the economy. The Federal Reserve created the money by printing money, in a very limited number of instances. That means you don’t get the full economy that should flow through. They don’t get full employment that should flow through.
So what is the solution?
I call it a Keynesian fix. There is no one solution. The basic thing is to reduce the interest rates that the government is able to borrow from the private banks. That will get some of the money into your hands more rapidly. In order to reduce the interest rates, you have two major problems here. The first is that there are too many institutions that will