Forget accumulating gold, printing money or buying mortgage-backed securities. One central bank is acquiring live ammunition and handguns instead in order to boost its security force.
According to a government website for public procurements (via Bloomberg News), the National Bank of Hungry purchased 200,000 rounds of live ammunition and 112 handguns for its security company.
In a letter to lawmakers, central bank Governor Gyorgy Matolcsy cited international security risks, like migration and terrorism, as reasons for the latest round of purchases. This comes as the central bank faced staunch criticism for spending money on real estate and fine art, including a painting by 16th century Venetian artist Titian.
Moreover, the National Bank of Hungary has set aside approximately $700 million to establish foundations that would teach alternatives to so-called “outdated neoliberal economics.”
Matolcsy, who is an ally of Prime Minister Viktor Orban, has said that the central bank has the right to spend its profits – the central bank’s profits have soared based on the increase in value of its foreign currency reserves. However, the central bank usually pays its profits into the government budget and any losses it faces are covered by the taxpayers.
Let’s not give the Federal Reserve any ideas on this. Janet Yellen already has the printing presses, she doesn’t need weapons too!
Hungry has been in the news in recent months, particularly when the government announced it would close its borders due to the ongoing Syrian migrant crisis.
The central banks know the future sence they dictate the future.
2 years ago it was suggested by the Fed that banks store emergency supplies for their employees.
What will the future bring?