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It's not just a Ponzi scheme due to population growth pressure and the old cashing out. It's also a Ponzi scheme because younger folks are literally paying for

It's not just a Ponzi scheme due to population growth pressure and the old cashing out. It's also a Ponzi scheme because younger folks are literally paying for the older folks through taxation. Low interest rates also disincentivize saving while subsidizing the accumulation of debt, and spurring more investment into asset classes (land and stocks mostly). This creates a Ponzi like effect where in as long as people keep responding to the incentives, number goes up. A population drop implodes all of it. Of course, presently, it may already be collapsing. When it does, I don't think that the Fed is going to respond by tightening and letting things correct to a healthier slow growth sustainable economy funded through real savings and value production. They will most likely immediately attempt to reinflate the bubbles with negative rates (0.00% FOMC, < 10% reserve requirement, and purchase operations on the open market).

jstarfish 4y ago
> because younger folks are literally paying for the older folks through taxation. This is symbiosis, not a scheme. Like them or not, the older folks literally built and/or paid for everything the young end up inheriting. The young are otherwise parasites.
- BirAdam 4y ago
  Older generations also created a debt level in the USA (public and private) that the young will be burdened with. They created corrupt governments that waged horrifying wars around the globe. They built nuclear weapons that threaten the globe. They did a lot of good too, but I wouldn’t call it symbiosis.
imtringued 4y ago
>Low interest rates also disincentivize saving while subsidizing the accumulation of debt, and spurring more investment into asset classes (land and stocks mostly). You're talking about how low interest rates are a Ponzi scheme yet it doesn't occur to you that maintaining positive interest forever is an even bigger Ponzi scheme.

jstarfish 4y ago

> because younger folks are literally paying for the older folks through taxation. This is symbiosis, not a scheme. Like them or not, the older folks literally built and/or paid for everything the young end up inheriting. The young are otherwise parasites.

BirAdam 4y ago
Older generations also created a debt level in the USA (public and private) that the young will be burdened with. They created corrupt governments that waged horrifying wars around the globe. They built nuclear weapons that threaten the globe. They did a lot of good too, but I wouldn’t call it symbiosis.

imtringued 4y ago

>Low interest rates also disincentivize saving while subsidizing the accumulation of debt, and spurring more investment into asset classes (land and stocks mostly). You're talking about how low interest rates are a Ponzi scheme yet it doesn't occur to you that maintaining positive interest forever is an even bigger Ponzi scheme.