Hi Marc,



I admire brilliant conciseness. The Fed is entering a fatal condition where they have to create exponentially increasing amounts of currency to match the new wealth being generated ... because so much of it is being generated not here, but overseas. And the rate at which that wealth is being denominated in USD is skyrocketing. But the Fed can't do this through promissory. That pipe isn't fat enough. But they can do it by purchasing USG instruments and selling them by the trillions ... like they did for China. That currency, also de novo, gets pumped through the New York Fed, to government bank accounts and out through government spending.



And that's why we have such a large debt. This is not sustainable, imo. We need a more sophisticated system that doesn't _require_ promissory and the encumbrance of currency itself to do the infantile, kindergarten task of circulating currency in proportion to the emergence of new wealth.



imo, it's barbaric, with roots in the shenanigans of street charlatans - con artists - of the 1300s. But getting people to change is obviously not easy in the realm of law and economics because Ignorance and superstition never quits.



Yes, China knows that there is a fair chance the regnant system is going to collapse and we will be reduced to barter. The only way to save the system, imo, is to rebuild it from the ground up. Of course, all the benefactors will have to be grandfathered into the system somehow because they have too much to lose, but its still doable.



- kk