Mario Salamanca

A Critical Look at Central Banks

A few days ago, thirteen top central bankers released a joint statement in support of Jerome Powell, Chair of the U.S. Federal Reserve. The core message of the document sounds familiar, almost ritualistic:

“Central bank independence is a cornerstone of price stability, financial stability, and economic stability, in the interest of the citizens we serve.”

At first glance, it appears technical and reassuring. But when examined carefully, this statement rests on three deeply questionable assumptions: independence, price stability, and acting in the public interest.

The First Lie: The Myth of Independence

Central banks present themselves as politically independent institutions, guided purely by technical expertise. In reality, their room for maneuver is far more limited.

When government debt reaches unsustainable levels, central banks are effectively forced to intervene. Liquidity injections are no longer optional; they become a necessity to prevent the public debt bubble from collapsing. At that point, “independence” becomes secondary to system survival.

Central bankers are not elected by citizens. They are appointed by political and economic elites. Unsurprisingly, their actions tend to protect the system those elites depend on. In practice, central banks operate less as neutral referees and more as guardians of the existing financial order.

A revealing detail is the absence of China’s central bank from this statement. The People’s Bank of China is openly dependent on the Communist Party, yet it has managed periods of price stability. This alone challenges the idea that formal independence is a prerequisite for monetary stability, especially considering China’s money supply now rivals or exceeds that of the United States.

The Second Lie: The Illusion of Price Stability

When central banks speak about “price stability,” an important question is often ignored: which prices?

Consumer goods may rise gradually, but the real inflation has occurred elsewhere. Financial assets have experienced unprecedented appreciation:

Equities at all time highs

Gold and silver at record levels

Commodities such as copper and platinum surging

Housing prices reaching extremes

Private and public debt at historic highs

This is asset price inflation on a massive scale. It disproportionately benefits those who already own assets while eroding the purchasing power of wages. The share of labor income in national output declines, while capital gains soar.

Calling this outcome “stability” requires a very selective definition of the term.

The Third Lie: Acting in the Interest of Citizens

If central banks truly acted in the public interest, their policy proposals would reflect that. The digital euro offers a clear case study.

Rather than empowering citizens, a programmable digital currency introduces unprecedented control mechanisms. Spending could be restricted, conditioned, or penalized automatically. Efficiency is the public justification, but control is the structural consequence.

At the same time, the proposed model offers no yield to citizens. Physical euros would be absorbed by the central bank for investment purposes, while users receive a digital liability that pays no interest and offers less autonomy.

This asymmetry raises an obvious question: who truly benefits?

Conclusion: Beyond Technical Language

The joint statement by the thirteen central bankers collapses under scrutiny. Central banks are not meaningfully independent. Their policies have not produced genuine price stability. And their initiatives increasingly prioritize system control over citizen welfare.

Behind formal language and technical jargon lies a consistent pattern: monetary degradation, asset inflation, wealth concentration, and the quiet erosion of purchasing power.

The “three lies” are not communication errors. They are narrative pillars designed to legitimize a system that transfers costs downward while preserving stability at the top.

And the more often these statements are repeated, the clearer that reality becomes.