It's a dynamic.
Government, as executive and regulatory function, is analogous to the central nervous system, while money and banking, as the medium distributing value around society, is analogous to blood and the circulation system.
We have recorded enough collective memory, aka, history, to realize government works best as a public utility. Though not yet to the point of understanding the same principle eventually will have to apply to banking.
When the medium enabling markets is privately held, we are all tenant farmers to the banks.
The evident problem with public government and private banking is it gives the banks the upper hand, as they are not subject to as much oversight, managed to neuter most of what there was and don't have to function around election cycles.
Consequently the only thing the flunkies, hustlers, prostitutes and psychopaths allowed in positions of power are really able to do, is run up the public debt the banks need to function.
The problem is that as these linear, goal seeking creatures in a cyclical, circular, reciprocal, feedback generated reality, people see money as signal to extract and store, while markets need it to circulate.
The medium has become the message.
While we may think of it as a commodity to mine from the economy, it functions as the social contract enabling it. Ultimately it is an accounting device, where the asset side of the ledger is backed by a debt.
Cryptocurrencies are showing what happens, when there is only the asset side, but no real debt to back it.
While the assumption is money is both medium of exchange and store of value, they serve very different purposes. Blood is a medium, fat is a store. Roads are a medium, parking lots are a store. The hallway is a medium, the hall closet is a store.
Effectively we own money like we own the section of road we are using, or the air and water flowing through our bodies.
So when we try pulling money out to save, ever more has to be added to the system and ever more metastatic methods of storing what has been extracted have to be devised.
Which is where all the public debt comes in. The secret sauce of capitalism is public debt backing private wealth. "The real money is in bonds."
The wars are just a way to make it go away, so more can be borrowed. The military industrial complex is really just the trophy wife of the banks.
The eventual problem is that since government is the decision making function, the head, while the heart simply feeds desires/needs, this dynamic has all the strategic aptitude of bacteria racing across a petri dish. Of which we are getting close to the other side.
In fact, this tension between the centripetal dynamic of political authority, versus the centrifugal dynamic of wealth leveraging more wealth goes to the dawn of civilization. That's why they invented debt jubilees 3000 years ago.
So either we move onto evolving banking as a public utility, or eventually we will go back to some form of private government, as the Russians and Chinese have effectively done, with Putin and Xi.
