The Fed ensuring people still use dollars and keeping the government-backed banking ponzi scheme alive?

Investment banking has always been a mechanism dependent on the state. Private interests may have agitated for the creation of central banks, but they are always a mutually beneficial organization for the banking industry and the government.

On the one hand, the banks have much of their risk eliminated by having a government institution to backstop them with taxpayer money and the courts. And the government gets a guaranteed industry to buy debt so it can continue the warfare and welfare state.

So why did the Fed secretly bailout banks? Because the government depends on it. If banks fail, the money supply drops. If the money supply drops, it gets harder for the government to tax and spend. So the Fed helped out by propping up the banking industry. It just so happens that many politically connected bankers made tons of profits off the deal, which is to be expected with an industry so tied to the state.

As for an earlier remark I made regarding investment banking being tied since its inception to the state, read "Wall Street, Banks, and American Foreign Policy" by Murray Rothbard. In it, he describes how up until the late 19th Century, investment banks only dealt in government paper. If you read more into railroad investment, toward the end of the 19th Century investment banking started trading in railroad bonds, a heavily subsidized industry. And now in the 20th and 21st Century housing debt has become another major investment banking security, which as we know is another government created problem by way of the secondary loan market created by Fannie Mae in the 1930s.

tl;dr: the Fed is not a private bank, it works hand in hand with the government.