Wednesday, April 8, 2020

Rolling up the banking network

Just How Bad Is It Going To Get: JPMorgan Halts All Non-Government Guaranteed Small Business Loans

Under the burden of a massive seigniorage tax which commercial banks cannot cover. 

The myth that the Fed can avoid zero bound by other means is a myth, we will always be hit by Fed taxes in a moment of crisis.   There will be a whole bunch of Keynesians panicking for another 'This time is different' restructure of the Fed. 

The main problem is prices in tax dollars go haywire, except for tax time. So Congress does not have any good estimates of the cost of government nor the amount of taxes, informative transactions go to shadow banks.

Economists have to understand the complete boundary conditions for real, not just make assumptions about them.

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