Central banks are called lenders of last resort, for good reason. They have now duly become the last resort in a generalised panic in the core of the world’s financial system on a scale not seen at least since the 1930s. Nobody trusts any credit, other than that of governments themselves.

In this situation, the rule is simple, clear and well-known ever since the days of Walter Bagehot. Central banks must lend freely against collateral of even borderline value. If the private sector will only lend to the government, the government must finance the private sector. It is as simple as that.