Well, Steve made a good point above. Same as crypto. Let's say Ponzi, or, Pyramid.... they're not precise definitions but let's assume that "fradulent" is loosely defined just for the sake of this explanation. Central banks (the FED being one) have an unlimited ability to purchase based on a zero-balance account. Government bonds are basically a glorified IOU, and have no true value until purchased. So from the point of origination, both instruments are essentially "imaginary". The "early investors" are world banks, central banks, governments.
There is no fraud here.
When it comes down to it all forms of currency outside of direct barter are a glorified transferrable IOU. Regular currencies, crypto, mini gold ingots, stone wheels at the bottom of the ocean, etc all have value for commerce almost exclusively as a perceived store of value (ie, a glorified IOU). The ability of central banks to adjust supply is a novel financial tool that has proven immensely valuable through the ability to stabilize economies over the last century or so that they have been in use. Are there risks associated with that capability? Of course. Have there been bad actors that have used the printing press poorly? Of course. And that is why the Fed is, and should remain, as detached from the political process/control as possible.
I can agree with most of what you're saying completely, apart from the fact the Fed (or any central bank for that matter) being detached from political process and control. While I do believe it SHOULD be that way, I'd personally be very comfortable saying it's a fact that central banks dictate political processes (both directly and indirectly), and maintain an absolutely immense amount of control.
If you have control over a nation's currency, you definitely don't need to worry about the laws that govern said country having any impact on you, correct? I think that's quite fair to say. Therefore, you would also have direct control over that country and its political processes through monetary "policy". Taxpayers, for example, do not get to vote on the rules and boundaries of how fractional reserve banking works, and neither does the government. The latter may seem to play out that way in a public view, but history and action shows a very distinct, clear, and different situation.
You make several good points though which I do agree with. We could be trading seashells or powdered dog shit if the majority decides it's valuable, but at the end of the day that only works at the barter level or person-to-person transactions. In our actual society, the monetary policy may be publicly governed by legislation, but I trust very much that any legislation which laid heavy stones in the path of the Fed would never come to fruition in the first place.
I suppose I see it as simple as this - control the issuance, flow, and levels of any serious currency, and you control all those who use it. Of course there are small exceptions (many), but I have always seen central banking institutions as far above the law, and even if responsible for success or failure, able to do as they please with total impunity.
It should not be confused (or presumed to be the idea) of them running an intentional ponzi or pyramid scheme but clearly they'll ensure their own safety and success before they ensure the financial security of the general public when worse comes to worse. After all it's in their bests "interests" (haha) to keep the wheels turning so they can continue issuing debt perpetually until A.) everything collapses, or, B.) they own it all... both very undesirable scenarios for society as a whole.
With ALLLLLLL of that being said. It's not a sustainable system. The debt cannot ever be paid back to them, and anyone with a calculator that's able to process a sufficient number of 0's can do the math and see these facts. This is how they slowly begin to acquire "public assets", natural resources, and debts that are more physical in nature... In the end, they'll own it all and then decide how things operate - whether there is a government who acts as PR or not... and we're already much farther than halfway there IMO.
I mean, I enjoy discussing these things and all that but nobody can say for sure what/when/where/why/how it all truly works, and/or how it will play out except for those who are actually executing these policies and calling the shots. Definitely not the lazy turds in DC.
