Governments are now so overindebted that they rely on their central banks to finance them.
But who is in charge of that relationship?
On the one hand, central banks seem to have lost all their independence and appear to be mere extensions of government treasuries. They are forced to extend financing to government, or risk triggering a sovereign debt crisis…
On the other hand, central banks could demand whatever they want from governments in exchange for access to their magic money tree…
In this video, John Butler and I tackle who is master and who is servant…
And if you’d like to hear from Nigel and other guests more often and more conveniently, why not sign up to the new Fortune & Freedom podcast on Apple Podcasts, Spotify, Amazon Music or Google Podcasts?
Nick Hubble
Editor, Fortune & Freedom
