Banking and the State
At other end of the spectrum is the stationary bandit. Like the roving bandit, he also holds the monopoly of coercion over his victims.
However, the stationary bandit has an encompassing interest in society’s welfare. He wishes to keep his victims producing: the more his victims produce, the more there is to take for the stationary bandit.
Sharing in society’s losses, the stationary bandit will make sure that his thievery is limited. The higher the losses in production from thievery are, the lower will be the level of aggression at which the stationary bandit’s take is maximized. The stationary bandit’s time preference will therefore be lower than the time preference of the roving bandit.
A great discription of the Federal Reserve System, (which isn’t Federal; reserves nothing; and only a ‘system’ as like OPEC for money!), “stationary bandit”!