The Financial Times article (December 19, 2013) – The long farewell to quantitative easing – concluded such: “Quantitative easing has demonstrated to politicians everywhere that it is possible to finance government deficits simply by printing money, a fact which had become obscure in the developed economies in previous decades. The umbilical link, previously unchallenged, between running a budget deficit and the requirement to sell bonds has been broken in the mind of the political system. Who knows what the long-term effects might be”. While mistakenly thinking crediting reserve accounts is activating any printing press it is true that there is no requirement to sell bonds to run government deficits. Today I am updating my analysis of the latest flow of funds data in the US. The US Federal Reserve recently put out the latest – Z.1 Financial Accounts of the United States – aka the Flow of Funds, Balance Sheets and Integrated Macroeconomic Accounts. If the FT author had have been studying this and related data he would have known years ago that there was no functional relationship between government net spending and its habit of issuing debt to the private sector. The former is financially unconstrained while the latter is just a system of corporate welfare. But recently, the government has given the game way by being the dominant purchaser of its own debt. Hysterical (as in comical) when you think about it!