Friday, November 20, 2020

Chart of the day from Beckworth

 



Larger balance sheets are more deflationary. Large balance sheet induces a spiral of doom.  The central banks crowds out other retail taxes and tax avoidance wins. 

Plain, simple, obvious but violates the 'This time is different' requirement. As we see from the Fed, no solution is valid unless it kicks the can all the way without a regime change.

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