1. Craziest week ever in oil. Living in a dystopian sci-fi reality... And I can't stop thinking about something that almost no one noticed last week. A little throw away line from @ReserveBankofNZ Governor Orr.

2. He said he was "open minded" about direct debt monetization.

That's an utterly insane thing for a central banker to say!

It's like the Pope saying he's "open minded" about converting to atheism.

3. Those three words: direct debt monetization are going to be the defining three words of the economic decade ahead, if not the rest of the century.

Orr broke the ultimate taboo in our monetary system and the world collectively shrugged.

4. The machine of government -- if not humanity -- is being seduced by the idea that we can spend indefinitely. As if we're in some new era where the laws and history of monetary financing don't apply.

5. It's here and we know how it ends. Badly. But we don't know when.

So make no mistake, the challenge right now is navigating the direct debt monetization era.

Because we're in it. Orr made it official.

My bet is it lasts much longer and goes far beyond what anyone imagines.

6. The role of central banks is setting a financial boundary between governments and money.

So bad government can't destroy all the wealth before it can be unelected.

Inflation targeting is secondary.

7. Yet somehow a bullshit scheme to control inflation via the yield curve allows governments to print away the value of your currency?

It's insane.

Yet that's what is about to happen.