Yeah, but private printing has limits. FED printing doesn't. Also private printing can implode, FED printing won't.The Fed prints far less money than private corporations and banks do. Every single loan made, bond sold, and stock issued is 'printing money', not just Federal and state borrowing.
So the money supply without FED is fairly stable, even though the fractional reserve system is IMO simply un-needed.
Ideally, yes; in practice, the Fed exists to bail out banks, big, politically connected banks at least, and the government backs lots of 'private' securities, like mortgages, props up currency, subsidizes derivatives trading, and even manipulates futures markets and the stock market; there exists a 'PPT' team, the Plunge Protection Team, at the Federal Reserve for socializing the 'free market' traders' risks, which is why no big bank has failed, no matter how crooked their managers are, and with the loosened accounting standards passed in 1984, not just in the U.S. but Europe as well, 'private' money creation is a lot less restricted than the Feds, and not only that, gives some foreign banks the ability to create debt in U.S. dollars as well, through derivatives trading. It's merely a matter of bribing Congress to loosen the standards of what qualifies as 'assets' and hence 'collateral'.
Not to mention nobody ever goes to jail for fraud, except of course some brown-nosing little lackey or two.
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