No Need For Central Bank

There is no need for a central bank to decide how much money is in the system. Commercial banks should compete to satisfy the demand for credit that exists. Interest rates on loans will find their own level, based on one factor: risk. Having a central bank standing behind the commercial banks has allowed the banks to ignore risk when lending and allowed them to stretch their reserve requirements past the point of all common sense. Fractional-reserve lending is a crooked enough practice for the banks to abuse- giving them taxpayer insurance for their gambling losses is preposterous. All businesses need to fear failure- designating the banks as 'too big too fail' strips banking of discipline.

The mortgage bubble and the fraud that came with it was enabled by government intervention into the credit markets through the GSE's, which distorted the risk equations. Bad lending practices should never be bailed out by government. It is a crime to protect the shareholders of poorly-run banks with these bailouts.

There does not to be a single forced legal tender, either. That's another central bank-enforced monopoly that harms citizens, because they are always at the mercy of the central bank's unchecked expansion of the monetary supply, which destroys the incentive to save. Citizens should be permitted to conduct commerce in any currency or commodity that they mutually agree upon- even if they create their own local micro-currency.