Centralized hierarchies (such as central banks) hoard or distort the free flow of information and preserve the privileges of the few at the expense of the many

“Centralized hierarchies limit, hoard or distort the free flow of information to serve their core function, which is to preserve the privileges of the few at the expense of the many. The only way to defend these privileges is to limit information to those at the top of the power pyramid. If we understand that money and credit are forms of information that contain data about risk, value and capital, we understand why money and credit in centralized hierarchies flow to the top of the pyramid. Limiting the free flow of information necessarily limits productivity. In other words, you cannot simultaneously have a centralized hierarchy and a free flow of information and knowledge. The two are mutually exclusive. Without a free flow of information and knowledge, you cannot improve productivity in a knowledge economy. It then follows that you cannot have a centralized hierarchy and a highly productive system that broadly distributes gains in productivity. If we put these together, we conclude that the only possible outputs of centralized hierarchy are stagnation, inequality and instability. These characteristics can be masked by productivity-boosting inputs such as cheap energy and credit, but once these temporary inputs decline, the system’s outputs revert to stagnation, inequality and instability.”

A Radically Beneficial World: Automation, Technology and Creating Jobs for All: The Future Belongs to Work That Is Meaningful, p. 72, Charles Hugh Smith