Quote from: RealBitcoin on October 31, 2015, 04:00:18 PM

Quote from: OrientA on October 31, 2015, 03:35:44 PM

Quote from: RealBitcoin on October 30, 2015, 11:53:15 PM

Keynesianism relies on the fact that the economy can outgrow debt, which is silly.

It is silly because the GDP grows linearly, but the debt grows geometrically or even exponentially, thus it is by definition a ponzi scheme by design.

There is some truth in the above assertion. The interest for loan is always higher than the interest on savings. So debt will grow faster.

Thats not what I meant.

There is 2 sides: GDP & Debt.

You create debt easily with the push of 1 button in a central bank. For GDP to grow you need manpower, labour, investment risk, etc.

Thus the risks involved in growing a GDP is by orders of magnitude greater than those of growing the debt.

So if the risk is bigger in GDP growth, then it will grow much slower than the debt. So this means that the debt will outgrow the GDP, and create this global ponzi scheme that we live in now.

So hyperinflation will have to come to wash away this madness.

It is sad the hyperinflation is the only way to reduce the burden of debt. When bitcoin is widely adopted, the government cannot issue debt by printing the paper. Maybe there will be fewer debt problems.