Interesting possibility here:
...by keeping short-term interest rates below the level of inflation, a government can pay off its bondholders with cheapening money. Through regulations, it can compel banks and other financial firms to buy its own debt, much like geese being force-fed for foie gras. As a result, current yields and future inflation-adjusted returns on government bonds fall.
Describing a possible Geithner/Default-mitigating tactic.
So your banker will be on a forced diet.
HT: POWIP (While you're there, scroll down to the section where Meep takes a cold-eyed look at "responsible public officials.")
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