It can go on for a very long time in the early stages of the scheme. But essentially it acts like the Monopoly game. As the game progresses, wealth becomes more concentrated and harder and harder for the players with fewer assets to stay solvent. The wealth accumulation process is favored towards those who get to create and control the money supply (the fractional reserve banking system where the banks get to create money via loans) much like in a gambling casino the rules favor the "house" rather than the players. If the nation is a rich nation filled with lots of natural resources and natural wealth, the seinorage from the citizenry can go on for many many years. But just like a gambler entering a casino with a million dollars, if he plays conservatively he might be able to play for years and years. But eventually the "house" wins because the rules are in the favor of the house.

Likewise the rules of the fractional reserve monetary system where our money is created via debt the "house" is the entity that gets to create the debt. The rules of the game are in their favor. A rich nation can "play" at the game for a long time, but eventually the wealth ends up in the hands of the "house" which has the rules of the game factored in their favor because of the way they get to create money via debt and collect the interest of that money created out of nothing.

We are in late stages of the "game". Like in Monoply, when one person owns all the wealth the game is over. In a nation when that happens, there is revolution.

Why do we have a system like that? Because wealthy well connected people that control the issuance of money or near the issuance get stinking rich. And the psychopaths like that. The framers of the constitution warned us of it. Jefferson faught against it. The constitution tried to prevent it. Revolutionary France is an example of what happens with a fiat monetary system based on debt. The Creature From Jekyl Island explains it.

Follow the money.

John