Secondly you seemed to not understand who set the interest rate but you are now confident in telling me about the perceived benefits of having a central bank set the interest rate. Which tells me that you just looked this all up about 10 minutes ago.
> It has value because governments cannot be trusted to directly control interest rates.
Neither can the central bank. As they are failing at their mandate of keeping inflation at 2%. The reported inflation rate is probably lower than the actual inflation rate due to CPI calculation wankery.
> The indirection has value, politicians are forced to spend political capital in order to wrest control.
To who does it have value? It doesn't benefit me (or most regular people) to have a 2% inflation rate and relatively low interest rates. It eats away the value of my savings. I now buy Gold (it hit a record high price today) and the value of my Gold and Silver has more than doubled in 3 years.
> Still better than black wednesday and Norman Lamont.
Saying it is better than a total crash isn't saying much.
Instead we have a gradual devaluing of the currency, many consumer goods are of far poorer quality (I repair my own vehicle and it is often better to get a reconditioned part than a new one), there is also "shrinkflation".
If we had a crash I actually think it would at least provide a wake up call and spur some real meaningful change.
