Daily Archives: October 28, 2010

When will the dollar die?

As I’ve said before, the debt-money system has a built-in debt/growth imperative, based as it is on compound interest.
Exponential growth cannot be sustained forever.

If debt MUST expand over time, it must be heaped upon either the private sector or the public sector.
When the debt carrying capacity of the private sector has been reached (as it has been now), the public sector must pick up the slack (as it has been doing for most of the past 100 years, but especially since 2008).
That is why I call government the “borrower of last resort.”
National governments are unique in being able to play this role because of their collusive arrangement with the banking cartel.
Once the government has absorbed all the available savings from the private sector, or if government debt cannot be marketed at acceptable rates of interest, the central bank will monetize the debt. That is the essence of inflation; generally rising prices are the result.