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The economy is structured as a Ponzi scheme. It is inherently self-destructive.
Imagine you are a new sovereign nation and you are authorizing Treasury securities for which the central bank will authorize credit in the amount of the security on your account. [say $1000 at 10% annual rate]. If at the end of the year, even if you received as taxes every dollar in circulation, you could not service your obligation. The $10 in interest you need does not exist.
The only way to cover your bankruptcy is to issue more deficit spending Treasury securities and use some of the new credit to service the old debt. That is the classic Ponzi scheme.
The Fed has run the Ponzi scheme, in the US since 1932, and internationally since 1971. As long as the public considers US Treasury securities a store of value, they can perpetuate the scheme. If the public sees inflation is greater than the interest received from securities, or if the faith in the dollar is lost, the market for Treasury securities will vaporize. If the Fed cannot auction Treasury securities, the US will face the same situation as Greece did a few years ago. Primary Dealers [PD]will buy maturing US debt for pennies and demand face value from the US Treasury. US government assets will be purchased by PD’s at fire sale prices. PD’s will substitute for the Trokia.
Additional details on the operation of the Fed, and a question of missing funds from the auction accounts managed by FRBNY, is at https://genzconservative.com/the-federal-reserve-for-dummies/ . FEDERAL RESERVE FOR DUMMIES.
Benjamin Ginsberg writes of similar historic European banking schemes in FATAL EMBRACE; JEWS AND THE STATE.