I have been seeing quite a few comments to the effect that central banks are propping up government bond markets now, and what happens if that stops? This is akin to saying the Bears 46 defence was not that good if they did not have all those players who were tackling their unlucky opponents. That is, that is how the system works, and it is a basic misunderstanding to expect things to be different....Bond Economics
Central Banks Are Always Involved With Government Finance
Brian Romanchuk
Actually, Central Banks should ONLY be involved with the finance of their monetary sovereigns.
ReplyDeleteThat or the fiat that Central Banks otherwise create should not violate equal protection under the law - e.g. an equal Citizen's Dividend.
Instead we have asset buying and lending from/to the private sector (e.g. commercial banks) and that DOES violate equal protection under the law - typically in favor of the rich.