One of the less well-known economists of the Austrian School was Professor Antal Fekete who died in 2020. Fekete arguably had a much better grasp of monetary issues than many of his contemporaries. His works are still available on his website, and one in particular details why debt must necessarily grow exponentially in a fiat currency system.
Every year monetary authorities must create at least as much new money as needed to service outstanding debt, in order to keep the game of musical chairs going.
Governments have lost not only their option to reduce indebtedness but, more ominously, the option to balance their budgets. There is a new item in the budget that is never named, that is well-hidden, but that is increasing by leaps and bounds year after year: that part of government borrowing that is needed to provide cover for the increase of the monetary base.
The utterances of politicians about their resolve to eliminate the budget deficit is disingenuous – it cannot be done under the prevailing monetary regime on a net basis.
What if … you knew that all governments live in a fiat currency world. What would you do? About 6 years ago someone hit me in the side of the head with a fish. I realized that fiat currency is a feature of the economy. If you can’t take advantage of that then you are the fish and not the fish eater. So get on board the winner train and plan for that useless currency. It’s actually pretty easy. Can you figure it out?
Fekete makes a very important point that I characterize as “inflate or die.” The monetary authorities have a choice of either ever increasing the rate of inflation or face a deflationary bust of epic proportions. I am placing my bet that they will always chose the inflation.
I got about half way through and realized I didn’t have a clue what he was talking about.
The “money changers” manipulated the value of the currency required to pay the tax.
So he tipped over their tables (records) and drove them out of the temple.
Calling them what they were. Thieves.
If a foot (a measure) was quietly shrinking inch by inch, or a pound ounce by ounce.
All money in circulation is borrowed into circulation. So when we haul money back to our lender as “interest” this leaves un-payed principal. Debt.
The point of the system is to make governments and individuals beholden to those who hold the debt.