A very large number of businesses is now practically insolvent because of the shut downs. What will survive, and who will get to own it, will to a very large extent depend on who can get the lowest interest rate loans from their local central bank.
#TheFiatStandard
#TheFiatStandard
Central banks are increasingly buying more equity, but also determining the ownership of equity through their allocation of credit. Bureaucratic decisions are becoming more important as the private market for capital is becoming increasingly ceremonial.
In an alternative universe with a hard money that holds its value over time, businesses and individuals would hold on to cash balances.
That would not just allow them to invest when the right opportunity comes, but also protects them from personal, national, or global crises.
That would not just allow them to invest when the right opportunity comes, but also protects them from personal, national, or global crises.
The problem with central bank capital allocation is beyond just politics & corruption. It's that central banks face no opportunity cost for capital and therefore cannot perform entrepreneurial economic calculation to choose the best between different uses of capital. 
