The only way we can create new dollars is to borrow them into existence, the creation of new debt. We can never pay that debt because it would simply take all our dollars, since every one is borrowed, and the money supply would shrink to almost nothing. The money supply can never be allowed to shrink because the debt would be defaulted on and there would be no money to service the interest on the debt. We cannot allow default, so we keep borrowing, creating more and more debt we can never pay. It is like a game of musical chairs, and when the music stops America will know suffering beyond comprehension, and the music must stop eventually.
Posted on: Sat, 15 Mar 2014 16:56:53 +0000
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