2.21 The Government Printing Press

At the top of the pyramid scheme, what temporarily prevents the entire system from collapsing is that there is one actor who can't be pushed into a "hard default", because it can always print more money at the top, and it can always bail out the banking system to prevent the level of defaults from reaching levels that would cause the system to collapse.

But all games that cannot last forever eventually MUST come to an end.


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