Agreeing to a large degree, but:

>I somehow don't see that even these guys who have all the information have the authority to make the best decision. Because they are always under the 1st commandment, "don't touch the banks". So banks force loans and investment upon the places where they can't return the money on time, with expected profits, or not at all. The banks have long ago developed this itch of money in their vaults looking for the next victim. Now the crisis of 2008 was purely a result of this kind of game, and what happened? Private transactions, between the banks, house owners, and resellers of funny papers (qv at "You never give me your money", Lennon et al) become something that's paid by everybody now become public debt, to be paid to banks from the tax money. Did I say "from tax money"? No, from loans that the govt's take from other banks (or whoever buys their bonds) and will repay from tax money.

Having some brakes in the loop of gov creating money and increasing spending is needed. While coupling the value to gold might have only small correlation with the parameters needed for "correct" money supply, loosening that brake in retrospect did not help. The trust customers show, mesured in interest, is at least some corrective.
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>Why? Because "if banks fail, some percentage of economy will also fail". Well, we bailed the banks out, and some percentage of economy still failed. In case of Greece, that percentage is about 20-30 at least (and don't know about other countries, just know how many places I've seen where shops are closing - in all the places I've been since 2008). I'd say that if banks were spayed, the percentage would be less, and we may even have growth.
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>Let them fall. They shouldn't be a sacred cow.

Full ACK on the bovine aspect, but Kevins point (other thread?) of Gov meddling with rules and making the game even more crooked can be seen here as well. Why is EU gov paper considered safe when calculating needed capital for debt exposure? Why not discount gov debt as well, as Greece debt was haircut? Via Basel/Solvency III such enterprises are forced to carry gov paper ;-)

ECB aiming for negative interest is also political, not economic mind set.