Seigniorage tax effect

HSBC to slash investment bank, 35,000 jobs in strategy overhaul

HONG KONG/LONDON (Reuters) - HSBC Holdings PLC (HSBA.L) said on Tuesday it would shed $100 billion in assets, shrink its investment bank and revamp its U.S. and European businesses in a drastic overhaul that will mean 35,000 jobs cut over three years.

The central bankers are taxing agents.  

Krugman has no clue even though this is straight out of complete market theory.  It is the law, the primary dealer law, the 14th amendment, mandated. There is no escape except Amazon and Walmart control transactions from imports to delivery, they're not subject to the tax, they essentially do their own banking. Hence we get less market share for the central banks and all central banking begins and ends with the primary dealers.

We can atully measure the loss of Fed mrket share:

This loss o velocity is the loss of transactions that have gone into shadow banking. Central banking market share peaked under Clinton.  Technology then took over, shadow banking is much more efficient as Bezos has proved.  The pricing error in dollar has increased by a third. This chart is leading to the same disruptive defaults that Nixon engineered, the Roosevelt engineered, and on down the line, backwards.  The bots are defeating Krugman and the theory of Godot.  Delong and his Solow theory is about 30% more defunct than twenty years ago. Nothing in Solow theory deals with Fed market share in any reasonable fashion and dollar pricing is far from meeting the Euler conditions.  Brad just dragged his students through a useless exercise, Krugman still preaching the Godot theory.  Krugman will be retired or dead and his Godot never arrived after a 40 year career.  Delong will retire and never once will his Solow theory ever reach a conclusion.