M Ashok, thanks for your comments! Unfortunately, an article of this length does not allow a complete discussion of pertinent issues. You raise excellent points! I was simply trying to illustrate that central bankers and governments are now acting on the agency costs embedded in this situation - as central banks run into real world limitations on what they can buy, they are now buying lower quality/higher risk assets. As it happens, the ECB and BOJ are further along that curve of unorthodox buying of assets, than is the Fed. Also, my comments on government debt and inflation were not meant to be exhaustive. You correctly point out that government spending can be foolishly spent at massive scales that drive prices for certain goods and services higher. The essential point I was making here is that governments sell bonds in lieu of printing money to make up budget shortfalls. Why else would a government with a printing press even bother to sell bonds? Why not just monetize the fiscal deficit? In describing bond issuance as a restraint on inflation, I was correct. It stopped the government from printing that money and instead paid for the deficit with capital from the private sector. Inflation is of course a complex topic and I made no attempt here to be complete in dissecting all the forces at work. Thx again for your insightful comments!