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Pittsburg, Kansas | The Federal Reserve System is ultimately a Ponzi scheme, albeit a long winded one. When you create all currency as debt it always has an interest charge liability attached. Thus it is mathmatically impossible to ever pay off all debt. Because new debt money has to be created to service existing debt.
So the Fed is somewhat telling the truth that we "need" 2% inflation. It is not for growth or the benefit of the general populace, but it is needed to service the existing debt. Otherwise the system goes into a deflationary debt default death spiral. If not for the Band-Aid of ZIRP and NIRP, we would have already been there. Debts are currently at unsustainable levels at normalized interest rates.
Here is an article about Bitcoin. I'm linking to it not because of the information about bitcoin, but it has some interesting observations and views on fiat fractional reserve monetary systems. As far as bitcoin, I do not know enough about it to have a very valid opinion yet (if I ever will). But the monetary discussion alone if worth the trip to read it.
http://www.zerohedge.com/news/2017-12-12/time-different-part-ii-wha...
John
Edited by John Burns 12/13/2017 10:51
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Financial sector expansion.
