I can't say about the exact details, but this is what I understand: We live in a fiat system; money is literally created out of nothing. When money is created

I can't say about the exact details, but this is what I understand: We live in a fiat system; money is literally created out of nothing. When money is created, it then needs to be injected into the system (economy) This could be done any number of ways. The more transparent and straightforward though, the less of an advantage to the insider parties and the more meritocratic. So an extremely complex, byzantine and opaque system has been created. People who are in this system will be happy to go into the many, many details of it. But they won't ever tell you why, it just is. When I think of modern finance, I think of medieval Europe. Plenty of reasons were given as to why one person ranked above the other. Why one had access to certain things while others didn't. But in general, byzantine structures benefit the insiders at the expense of the outsiders. It's designed to be anti-meritocratic without having to claim being a decedent of the sun god. I really fail to see why, other than avoiding meritocratic distribution, the fed doesn't open it's own lending window directly to the public. They fret that lowering interest rates won't increase economic activity. I dare them to open those rates to the public and not see an increase in economic activity.