Loading ...Piece by Nick Giambruno
The truth is, no matter what happens, the debt will not stop growing. It’s not even going to slow down. The debt is increasing exponentially.
The only way the US government can continue to finance itself is for the Fed to create ever-increasing amounts of fake money.
If the Fed doesn’t provide more monetary accommodation to lower interest rates, the growing interest expense will bankrupt the US government… and bring down the entire debt-based economy with it.
In short, the Fed must print ever-increasing quantities of fake money, or the system will collapse.
Ludwig von Mises, the godfather of free-market Austrian economics, summed up the Fed’s dilemma:
“There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved.”
The US government will not voluntarily “abandon credit expansion,” as Mises puts it because Washington is dependent on issuing increasing amounts of debt to pay for the ever-growing costs of Social Security, national defense, welfare, and interest on the federal debt.
As Max Keiser succinctly said, “You can’t taper a Ponzi scheme.”
That means their only choice is to debase the US dollar by ever-increasing amounts until, as Mises puts it, the “final and total catastrophe of the currency system involved.”
That’s why I am convinced extreme currency debasement is the inevitable outcome of the debt spiral.
All the rest is noise.
Michael Saylor captured the essence of the situation when he said, “The road to serfdom consists of working exponentially harder to earn a currency that is growing exponentially weaker.”
I believe rampant currency debasement will be the most important investment trend of this decade, and it will devastate most people.
The worst of it could go down soon… and it won’t be pretty.
It will result in an enormous wealth transfer from savers and regular people to the parasitic class—politicians, central bankers, and those connected to them.
Countless millions throughout history were wiped out financially—or worse—because they failed to see the correct Big Picture as their governments went bankrupt.
Don’t be one of them.
https://www.zerohedge.com/personal-finance/you-cant-taper-ponzi-scheme