Federal Reserve to increase interest rates by 50 basis points

Re:Federal Reserve to increase interest rates by 50 basis po... by rglover on Wednesday December 14, 2022 @04:36PM (#33990937)

The ponzi scheme attribution is due to the money printing and fractional reserve lending system. They can't pay off previous debts [1], so they print more money to try to inflate the debt away (which only leads to the creation of more debt, keeping the cycle perpetual). If they stop printing money/issuing new debt, the whole pyramid collapses.

[1] https://www.usdebtclock.org/

[ Parent | on HN ]

Re:Federal Reserve to increase interest rates by 50 basis po... by highwaylights on Wednesday December 14, 2022 @05:42PM (#33991772)

But this isn’t true.

Printing money debases the currency, it doesn’t increase borrowing. Not debasing the currency further is the reason all debt isn’t just printed away.

Bitcoin is entirely a ponzi, which is why I was surprised you cited it as an example of something better.

[ Parent | on HN ]

Re:Federal Reserve to increase interest rates by 50 basis po... by rglover on Wednesday December 14, 2022 @05:59PM (#33992016)

> Printing money debases the currency, it doesn’t increase borrowing.

It does both. Where do you think that printed money goes? The business model of banks is to lend out money. They go to the Fed to get more dollars and then lend those dollars out to other people. The more dollars available, the more demand for debt.

> Bitcoin is entirely a ponzi

You'd have to explain why because it's fundamentally not. There's nothing about it that requires coaxing others into it. You either want to use it or you don't.

[ Parent | on HN ]

Re:Federal Reserve to increase interest rates by 50 basis po... by highwaylights on Wednesday December 14, 2022 @06:41PM (#33992552)

I’m going to leave it here and wish you well. I could refute the above, but you’ll disagree, we’ll never see eye-to-eye, and we’d both just be arguing into the wind.

I (sincerely) hope it all works out for you and we’ll find out in time what it turns out to ultimately be.

[ Parent | on HN ]

Re:Federal Reserve to increase interest rates by 50 basis po... by rglover on Wednesday December 14, 2022 @07:02PM (#33992835)

> I could refute the above, but you’ll disagree, we’ll never see eye-to-eye, and we’d both just be arguing into the wind.

You're probably not wrong, but this is your dust up. Give me a shot, I'm open to well-reasoned arguments.

[ Parent | on HN ]