The important story

Here is the important news story this week. The central bank of the EU has turned off the free money spigot. End of ZIRP and NIRP and QE.

When money is loose, crime proliferates. It’s obvious at ground level: gold rushes, oil booms, cattle drives, postwar booms, Vegas. Whenever you have crowds carrying extra UNEARNED money, criminals flock to the scene with guns and knives and schemes and scams.

It’s the same at higher altitudes, except that we don’t notice the effect until the valve is closed. Our central bank closed the valve a year ago, and corporate shenanigans have been imploding with giant satisfying POPS and SPLATS ever since. Government also pulls in its tentacles when it has to pay interest for its loans.

Now the faucet is off in most of the Western world, so there’s less chance of cross-border money laundering.

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