The Monetary Abyss Stares Back and Asks Who’s Next? — Strategic Culture
This system is ultimately a Ponzi scheme piling credit on top of credit until there are no more greater fools to sell the new debt to.
That’s the system we have. And it is collapsing precisely because the world is situated at the point where there is little more productive capacity to monetize and pull that capital from the future to fund the new debt.
It won’t matter if we replace this system with pure helicopter money without debt as the Modern Monetary Theory proponents argue. We’re already doing a version of this by having the central banks buy debt they never intend to sell on the open market. So, the debt itself is without value. The money printed from those bonds is as much scrip as if the bond had never been issued.