We live in an era characterised by a confusing evolutionary dynamic relationship between financial innovation, the state and patterns of investment that we barely understand.
We don’t understand it, it’s all a mystery, therefore the government which knows nothing about it should plan it.
At the core of this conundrum is the little understood issue of shadow money. Shadow money is a promise to pay backed by high grade collateral, usually government bonds, which means that government debt now plays a key role in the stabilisation of the financial system.
No, no, it ain’t.