The Great Enabler

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If you thought the the MMT drivel died with the Sanders candidacy, look no further than the weekend FT interview (access above). Some of the comments from this interview were virtually mind blowing. The discussion could have not been more apropos as legislators scramble to throw more money at  the slowdown precipitated by the global pandemic. While we are of the opinion that it is the job of Government to step in and provide support for situations exactly like this; namely sharp exogenous shocks to the economy with the potential to be  both socially and economically destabilizing. What we take issue with is the notion that mechanisms and programs at both the Central Bank and the Treasury level are “free”.  The thinking embodied in this article could only be seen through the lens of a global financial system held captive by Central Bank behavior.