What if the Whole Shebang Unravels?

April 27, 2023

by Charles Hugh Smith Of Two Minds

Nobody seems to be wondering what happens should the real world no longer respond to the Perpetual Motion Finance Machine.

Scrape away the hand-wringing about interest rates and we find a bedrock of complacency. Nobody seems to doubt that the status quo can grind on for another 30 years doing the same stuff it’s done for the past 30 years.

Japan’s Perpetual Motion Finance Machine can apparently run for another 300 years without a hitch. Here’s how the Perpetual Motion Finance Machine works: the government spends huge sums it doesn’t have by selling bonds to the central bank, which creates the money to buy the bonds out of thin air. Perpetual Motion–perfect!

Japan’s immense success with its Perpetual Motion Finance Machine offers other governments a rock-solid template for permanent funding of all the goodies everyone wants and needs. It’s perpetual motion, nothing can stop it.