European banks are now loaning money to Greek banks, who in turn use that money to pay the interest they owe back to the European banks that loaned them the money in the first place.

That’s it. Shortest post ever because stupidity doesn’t need a lot of explanation.

Who else is doing that? We are. We borrow money from China, then when the interest payment comes due, we borrow more money from them and use it to pay the interest on the money we already borrowed from them.

How long would your family finances last if you used one credit card to pay the interest on the others? Since that can’t go on forever, what would the end of that look like for you and your family? Now apply that end to Greece and the United States. It’s going to look a lot similar to what you are envisioning would happen to you, but in reality it IS going to happen to you, and you didn’t even get to enjoy being the one who ran up all the debt.

You just can’t make this stuff up, nobody would believe you.

More on Mish’s Blog.

Categories: Economy, Federal Reserve, National Debt

Tags: Europe default, exit the euro, Greek default, ponzi schemes, printing money, The Fed, US default