Well, robomatic, if pyramid schemes are not illegal, they certainly should be, because their intention is to defraud many for the benefit of a very few.

Just imagine how great it would be to be a bank. You only have, let's say, 100 million $ in real money deposited by your depositors. Okay?

Now you make loans to a whole lot of different business outfits and to the government, and said loans total, let's say, $800 million. Banks do that. All the time. And they charge interest on all of it!

But where did the additional $700 million that they lent out come from? Why, from thin air, that's where! They created it out of absolutely nothing when they made the loans (many loans to many customers). It's a fiction, written on a balance sheet, created by a signature, and backed by no collateral.

The government did not issue that additional $700 million, they did not print the bills, they did not mint the coins, it isn't REAL. But nobody knows that, so it becomes real in its effect, and the bank created it from nothing. And they get paid interest for it. And then, for gosh sakes, where will the interest come from? Out of the sky?

What a deal. It's like having your own personal money tree.

How do you blame the government for that pyramid scheme? They didn't engineer it, they don't profit from it. The privately owned banks did it and THEY are the ones who profit from it. The only sense in which you can blame the government is this: the government never bothered to originally regulate the banks in order to PREVENT them from doing this kind of pyramid scheme.

Now what happens in the long run? The amount of money in circulation, most of it created out of thin air through banks loans, gets more and more enormous....as is the case with pryamid schemes. But the material world doesn't get more enormous. Thus the dollar becomes worth less and less in real terms, because there are more dollars to go around.

And that's where we get inflation.

Again, the government did not do this. Private banks did it. The government failed in that it did not act to prevent them from doing it, but the government is massively in debt to those same banks...with debts it realistically can never pay off.

And the banks get richer.

That is our reality. It isn't the government in control of the banks, it's the other way around.

Some small banks, of course, will go under when the false bubble bursts...and the biggest banks will buy up their assets, get a bailout from the government (meaning the taxpayers), and the whole fraudulent criminal scheme starts rolling once again.

Boom and bust. Boom and bust. Boom and bust. That is how the system is set up to work.

The only thing you or I can do in the face of it is this:

1. STAY OUT OF DEBT!
2. Ensure that we have a viable way to earn a living.
3. Save up during the good times, because bad times will come. It's cyclical, just like a sine curve.