Commentary More than 100 economists, led by French economist Thomas Piketty, creator of some of the most absurd proposals embraced by the extreme left, on Feb. 5 published an open letter in which they called for a cancellation of government debt in the hands of the European Central Bank (ECB) “in exchange for greater public investment”—which, by the way, would be paid with more issuance of public debt. Fascinating. Luís de Guindos, vice president of the ECB, has settled the controversy with two pieces of evidence. “The cancellation of debt [on the ECB balance sheet] is illegal … [and] does not make any economic or financial sense at all,” he explained in a speech, according to Europa Press. The first part is obvious. It is prohibited by the bylaws of the ECB. I will explain the lack of economic logic here. A debt write-off or cancellation is evidence of the issuer’s …
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