So you think the endless boom-bust cycles (including the Great Depression) and the inflation slavery of the Federal Reserve system is preferable to a little deflation now and then.
There is no real alternative to a Central Bank in a modern economy, superstition aside.
It looks to me like there are five issues that the people need a debt-based society for (things they have to borrow for or want the government to provide a safety net for).
I think a system could be set up where the consumer would not have to borrow for these things thus making banks for the average consumer not needed. It would work by establishing an account when a person is born, dividing into these five categories, and letting the accounts grow by investing in the nation's businesses, and then having a schedule set up where the investment returns are distributed to each citizen for life's needs (upgrade to homes every ten years, upgrade personal transportation every 5 years, etc). Each citizen would be free to add into the system to have better-than-average upgrades, etc.
All fiat currencies fail and when our dollar fails it'll be much worse than a little deflation. Our enemies will use the occasion of our currency failure to enslave us even worse than the Federal Reserve has since the Wilson administration. It's part of the grand plan.
You really should study a little NON-crackpot history before making such sweeping statements. Should you do so you will find than not only were there frequent deep depressions throughout the 19th century. Added to them were regular financial “panics”. These raised havoc with the economy and life in the U.S.
In fact, it was PRECISELY because of the frequency and destructiveness of such events that there was a loud and long demand from farmers and Westerners for a Reserve Banking system. They were tired of being wiped out arbitrarily by the Money Center Banks back East.
Panics were sometimes stopped when the bankers, under the leadership of J.P. Morgan, stepped in and used their financial power to provide sufficient liquidity to handle the runs on banks. It was only after he died that these financiers and bankers realized that some other means of handling these disturbances would have to be found.
The Money Center Banks had opposed a Reserve Bank (because it diminished their power) for decades only changing their minds after the death of Morgan. There was no giant conspiracy. This was a Populist demand.
Nor is there any natural tendency towards inflation posed by central banking. Rather than “a little deflation” which you fantasize existed there was persistent and severe deflation caused by the lack of money, not to mention the complications caused to the bi-metallic system we were on when the ratio of gold to silver was upset by discoveries of one metal or the other. From 1814-49 the wholesale price index fell 55%, only the discovery of gold in California inflated the economy out of the depression.
In order for the economy to grow at an acceptable level it has to have a money supply which grows at least at 3% per year. Since the discovery of the New World the average rate of growth of the gold and silver supply has been LESS than 1.2% i.e. a persistent deflation. And this growth rate INCLUDES the massive supplies brought into Europe in the 16th century.
The term “fiat” currency is not particularly informative since that does not describe the money we use. No matter how many government “fiats” are proclaimed they cannot make currency valuable if the people do not believe it to be so.
It really is a “faith” currency and that faith is sustained by the ability to purchase things with that currency.
Since the creation of the Federal Reserve the American consumer has seen a dramatic increase in his living standards and is able to purchase and own things which Kings of old could not afford.
Central banking, like all human activities, has not always been directed by right-minded directors but that does not indicate in any way that it is an inappropriate institution or one in opposition to the needs of the citizens.