People believe that fractional reserve banking breaks down without exponential growth only because the natural rebalancing process is stopped by the government;

People believe that fractional reserve banking breaks down without exponential growth only because the natural rebalancing process is stopped by the government; every time the economy tips toward recession, there is government intervention both in stimulus programs and by national banks to halt economic downturn at all costs. It is akin to forest fires. If small, natural fires are suppressed, eventually there will build up so much kindling an inferno becomes guaranteed. Our economy is like a town built in that forest.