The Fed Can Only Fail
And We'll All Lose
Peak Prosperity's Chris Martenson emphasizes the problem the U.S. economy is facing - it's been based on massive credit creation since 1980 .. since 1980, debt has climbed faster than GDP:
Martenson explains how it is not possible to grow your debts faster than your income forever .. the Federal Reserve is trying to keep this whole credit/debt bubble going, especially given the state of overspending in Washington .. Martenson says this unsustainable growth will stop at some point - it is a mathematical certainty .. "It's now extremely doubtful that the Federal Reserve or Washington will willingly cease the current Herculean efforts towards reviving this flawed practice of borrowing too much, too fast. So we have to expect that it will be some form of financial accident that finally breaks the stranglehold of failed thinking." .. here is the growth in credit/debt necessary to keep things going below, the question is can any sort of economic growth support this exponential growth?
"This is the critical takeaway from all of the math above: For the Federal Reserve to achieve anything even close to the historical rate of credit growth, the dollar will have to lose a lot of value. I truly believe this is the Fed's grand plan, if we may call it that, and it has nothing to do with what's best for the people of this land. Instead, it's entirely about keeping the financial system primed with sufficient new credit to prevent it from imploding. That is, the Federal Reserve is beholden to a broken system; not anything noble."
LINK HERE to the essay 
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