The Great Dollar Ponzi Scheme. A Ponzi scheme is a form of fraud where there is nothing of value being produced, but instead the illusion of profits is created by paying yields from the money that comes flowing in from later investors. The scheme collapses once the flow of later investors starts drying up.
The dollar system is a literal Ponzi scheme that doesn't generate anything of value, yet currently promises to pay 5.5% yield. Where does the money come from to pay this yield? The Fed prints it, which devalues the existing dollars. So the Fed pays out yields by extracting value from anyone who is saving in dollars. Dollar savers are the investors in the great dollar Ponzi scheme.
A currency unit like the dollar only has value if people want to save it. Hyperinflation ensues once nobody wants to save a particular currency. Instead of saving, they spend as fast as they can for whatever else they can get. That's hyperinflation.
If you know how the US bond market works, you'll know that falling rates have created extraordinary profits for early investors. Now riding rates are exposing the ruse. Falling rates can't last forever.
The flow of later-stage investors is starting to dry up.
https://www.ft.com/content/91f39150-9abe-4257-8d52-17520d35e534
Spencer
npub144…z9926
2023-08-14 22:16:30
Author Public Key
npub144mf9j88sxt3yu0lfrsx2e4ukcqajanpfz9ehdav7ufddp92dutqhz9926Published at
2023-08-14 22:16:30Event JSON
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"content": "The Great Dollar Ponzi Scheme. A Ponzi scheme is a form of fraud where there is nothing of value being produced, but instead the illusion of profits is created by paying yields from the money that comes flowing in from later investors. The scheme collapses once the flow of later investors starts drying up. \n\nThe dollar system is a literal Ponzi scheme that doesn't generate anything of value, yet currently promises to pay 5.5% yield. Where does the money come from to pay this yield? The Fed prints it, which devalues the existing dollars. So the Fed pays out yields by extracting value from anyone who is saving in dollars. Dollar savers are the investors in the great dollar Ponzi scheme.\n\nA currency unit like the dollar only has value if people want to save it. Hyperinflation ensues once nobody wants to save a particular currency. Instead of saving, they spend as fast as they can for whatever else they can get. That's hyperinflation. \n\nIf you know how the US bond market works, you'll know that falling rates have created extraordinary profits for early investors. Now riding rates are exposing the ruse. Falling rates can't last forever. \n\nThe flow of later-stage investors is starting to dry up. \n\nhttps://www.ft.com/content/91f39150-9abe-4257-8d52-17520d35e534",
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