Notwithstanding its conservative investment portfolio, the central bank remains highly profitable because of its unique business model. Rather than paying for funding, it simply creates the money that it needs at no cost. The return on its investments, as a result, almost all flows directly to the bottom line.
So simple and so beautiful. What kind of genius entrepreneur would invent such a perfect business model? “Economist” John Law of the 17th and 18th centuries. Not only did he invent the perfect business model, but he also made significant advances in the business of Bubbles. How did his business model innovation turn out? Like most incredibly brilliant men who come up with bold ideas too early, John Law “ultimately fled the country disguised as a woman for his own safety.” 10 years later, Law “contracted pneumonia and died a poor man.” This is all according to Wikipedia, which, according to Wikipedia, is the source for the unvarnished and unbiased truth.
In the twenty-teens, our central bankers are much more advanced, more ethical, and more American. Importantly, they also look way less good in drag and wouldn’t “pass”. There should be no way this ends as badly as all the other times this has been done. What is that expression? How does it go? Shit’s way different at this point in history, dude.
Recommendation: Long the best business model, short all inferior business models, as the former will compete away the latter.
HT to the Paleofish