Whose government is it?

You can tell the priorities of government by looking at what it is trying to optimize.

China is printing RMB like no tomorrow, so that they can sterilize dollar inflows and keep exporting. They are interested in developing domestic capital: skills, a trained workforce, technology transfers, research and development, viability of the business sphere and full employment.

Reading Keynes, the emphasis was always on maintaining full employment. Then the emphasis shifted to total output growth. And since then the emphasis has shifted to protecting bondholders and keeping inflation and interest rates low.

We are protecting and bailing out bondholders, not investing in our capital base or fighting to build the tangible things that create wealth for the future: better infrastructure, education, research, stable business profits and high wages.

Any government that is more concerned with inflation and interest rates than with employment and business development has been taken over by the illusion that financial wealth is equivalent to real wealth.