Easy peasy economics
So it seems that the European Central Bank found a way to solve the whole sovereign debt crisis. As told before by that insufferable jew , instead of buying government bonds directly, 'monetizing sovereign debt', they are just funelling cheap money (1% interest) to private banks, who then use the money to buy southern government bonds, driving down the yield, but still getting around 4%, which is a handsome profit. So banks are happy, governments are happy, and the ECB gets to keep the euro.
Funny how Yglesias hates the scheme, because it means that by choosing not do funnel the funds, the ECB can pressure governments into do its bidding. And that's 'evil'. Well he seems to forget the governments can choose to have a budget surplus, which would make them free from ECB meddling. But governments having sound finances is beyond good or evil, its unthinkable.
Funny thing is he also said that he 'suspects' the thing will end poorly. What does it mean he 'suspects'? Means he doesn't know shit. Yet he has a massively popular blog on finance. I used to read a lot on economics, and have a good friend who is an authority on Austrian economic theory. Yet each day it passes this idea gets a stronger hold on me: economics is like theology. Some theories are sounder, some are crazier; yet nobody has the damnest idea. All our economic authorities are just trying shit to see what hap...