Bonds on expiration are paid with the money from freshly issued bonds, so effectively they are rolled over to another period, be it 10, or 30, years.
This is repeated endlessly, each time the cost of the operation is higher. The cost doesn't matter however as FED can print the amount that is required.
This game is called 'kick the can'.
The game is called keynesian ponzi scheme. It's a ponzi scheme where you have a pyramid ownership, and everybody pays a part to the top of the pyramid (the elite), when they run out of money or new participants, they just print up more (confiscating from the already paid out clients) to run the scheme.
It is a complicated and well thought scheme, but it's still a ponzi scheme.
yes, we agree that this type of game is a clearly Ponzi scheme, there is no discrepancy in our posts. The Keynesian economy is based on the assumption of the unending growth as a remedy for everything, and thus the need for creating it artificially leads to what FED does - money printing.
Each government can do that on the smaller or bigger scale, the impact of FED printing press is by far the biggest, due to the dominant position of US economy.