Are Central Bankers just Economic Make-up Artists, Sexing-up Prices?
Spanish banks, the primary buyers of Spain's debt, have used up almost all the money they borrowed from the ECB so don't have much left over to buy more sovereign debt…same for Italy. What are policy makers going to do? Central banks have taken it upon themselves to act as make-up artists, hell-bent on sexing up global asset prices beyond their substance and years, hoping the rest of us won't know the difference. Not everyone in this world is so blindly inebriated. In the Greek town of Volos, they are using a currency barter system. Spanish towns of Villamayor de Santiago, Mugardo, and Salvaterra have reportedly reintroduced the old Spanish currency, the Peseta alongside the euro. Joining us to discuss all of this is economist and former assistant treasury secretary Paul Craig Roberts.