I was going to write about last week’s ECB decision to purchase unlimited volumes of government debt which means that any private bond trader that tries to take a counter-position against any Eurozone government will lose. It means that the central bank can set yields at wherever it wants including zero. It means that all the mainstream economists are wrong if they claim that deficits drive up interest rates to the point that governments become insolvent because the private bond markets will refuse to purchase their debt. I will write about that tomorrow as I have some number crunching to do. But today – a related story – the myth that there is such a thing as a “good” budget deficit reduction when private spending is insufficient to maintain full employment. That should occupy us for a few thousand words.