A Ponzi scheme is an unsustainable scam that relies on a continuous influx of new money to keep it going.
Many believe the Federal Reserve is running what amounts to a giant Ponzi scheme.
That's because the US government's obscene spending and skyrocketing debt have reached an inflection point where the whole system will collapse unless the Fed pumps an ever-increasing amount of new fake money into the system.
The situation is compounded by the fact that the more the US government borrows, the larger the interest expense on the federal debt, which causes it to borrow even more.
Borrowing money to pay debt service is the inflection point in the debt spiral, and the US is at that point.
If the Fed doesn't provide more monetary accommodation to lower interest rates, the growing interest expense will bankrupt the US government and bring down the entire debt-based economy with it.
The US government will not voluntarily "Abandon credit expansion," as Mises puts it because Washington is dependent on issuing increasing amounts of debt to pay for the ever-growing costs of Social Security, national defense, welfare, and interest on the federal debt.
https://internationalman.com/articles/you-cant-taper-a-ponzi-scheme/
No comments:
Post a Comment