The role of government is to act as a transfer agent between taxpayers and bondholders. Government taxes the spread between a taxpayer’s work efforts and what the taxpayer yields from those efforts. Government takes its cut and passes on the rest to its bondholders. As a people manager, government creates narratives to encourage more yield and implements policies to encourage or support actions that create that yield.
Tag: Board of Governors of the Federal Reserve
Joe Biden and the Federal Reserve: The competing inflation fighting narratives …
As an economic narrative, Mr Biden’s fiscal and legislative policy will depend on a defacto gridlocked Congress. By keeping attention on Mr Putin and to a lesser extent Mr Trump, Mr Biden hopes Americans do not notice his inability to manage the political economy out of an inflationary mess.