When we have this level money printing the consequences of this debased are numerous. One of those that goes unnoticed by many is that we continue print up money to allow companies to furlough or bail out companies this delays the opening up of the economy. In years gone by the bond vigilantes would have started to ask for a higher rate or return on money that is being leant to the Government.
Now that this deficit spending is being monitized by Central Banks this effect has been neutered and yields are < 1%.
The consequence of this action is that we can continue to keep the economy closed longer than we should as the money being used for this essentially free (for the time being). At the same time we are building up within the population that this is all free of any cost or side affects.
This allows those on the both sides of the political spectrum left and right to falsely believe they can spend without their being any consequences, this will lead continued deficit spending on both sides and continued belief that montizing debt can go on indefinitely , central bankers have to know their economic history , but just like rulers of Rome they hope to push the problem on someone else’s reign.
Bread and Circuses for all ! (Famine and Debt for the Grandkids)
