Quote:
Originally Posted by brandonstills
BTW, a ponzi scheme is where you take money from people and tell them that you will pay them back with interest later on. Then with money you receive from the new people you pay back the earlier people. Social Security is one example of such a scheme. As long as there are more contributers than people you need to pay back, it works, but unfortunately, such a system can't logically exit in perpetuity.
Abandoning the gold standard is not a Ponzi scheme.
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When the Fed prints money they require a payment with interest back. But when you print A and expect B back you have to print C and expect D back and so on. As long as there is more people borrowing dollars it will be alright, but once people stop borrowing dollars it all collapses. It is a Ponzi scheme.