The End Of The Inflation Deflation Debate
…. Our paradigm is based off of a debt based currency that must create more debt every year in excess of the debt AND interest accrued the year before. This is because every dollar that comes into existence is a debt with a certain amount of interest attached on to it. When debt is created, money is created. When debt is paid off, money is destroyed. The real trick is that the money that is owed for the interest does not exist, since only the principle of the loan is put into the economy. The ONLY way this interest can be paid is by more debt being created to pay the previous debt AND interest. This is why we have an ever expanding debt that cannot stop.
“In the end we are all dead.” John Maynard Keynes
The dollar collapse is a mathematically inevitable event
It will also be the largest single event of human history. At some point the debt incurred will be more than the economy can bear and there will be a default. Or the other way out, is that we constantly print more money to keep the system going, that we eventually destroy the value of the currency and people lose faith in it, which leads to a rush out of it and a hyper inflationary depression. Either way the debt, the dollar, the economy, the stocks, the real estate, the pensions, our entire way of life, ends.