Thread by @gbponz

THREAD: on.wsj.com/3aXrh1C at some point, the #FED and the other central banks will have to change status. It might take a creash to do it.(/) @amlivemon @jeuasommenulle @nglinsman @Halsrethink @bondstrategist @DiMartinoBooth @DavidBCollum

1. they might either fall under an higher supervisory authority checking every financial aspect of their activity apart from setting official rate and providing liquidity though banks and have, for example, ALL influence of banking instruments sold wrested away.(/)

2. since their activity has been for over a decade not "policy neutral", they might be forced to become "elected officials", shorn from their patina of indipendence they voluntarily discarded. In fact, at least in the #EU, they might be a first: (/)

As Von Der Leyen has proven, there is no relation between what voters vote and the leaders they get in the EU. But the #ECB board could be forced into a direct election contest, in an environment where what they call "qualifications" would be a badge of shame.(/)

3. we might go back to an old Italian classic, by biting the bullet and simply accept publicly that Central Banks will monetize whatever deficit any politician will want and vote.... which is not far from our reality. Remember #QT? (/)

Capital gain taxes, like inheritance taxes, are one of my area of interest. Never EVER any discussion strays from insults after 20 minutes. I have this daft tendency to check "where the money goes and what are the alternate ways to calculate this".(/)

Apart from my superstition that "naming calls" and politicians calling for capital gain taxes wake up momma bear, taxing unearned gains is #QE : it sucked interest income from my son to me, and then destroyed it forward for both.(/)

The distortions to price discovery that #QE has done is the biggest in human history, but taxing unrealized gains.... well that could be interesting too.