All posts from in,

Irredeemable Currency Collapse

Talks on our monetary system

more: Leveraged Bubbles

Question: Inevitable Currency Collapse?

Premise 1: All dollars are borrowed into existence. The Fed, for example, creates dollars to purchase government bonds, which, in turn, are paid in dollars, but those dollars are backed by debt. Around and round we go.

Premise 2. The debt can’t be extinguished, so debt grows while the marginal utility of debt declines. You borrow $100 from the bank, then repay your bank with $100 then your cash declines by $100 and the bank’s loan balance declines by $100. But what happens to the...