paper money

Fixed income debt instruments, including bonds, are the backbone of the financial system. It becomes a big problem if and when they are worthless. Billionaire hedge fund manager Paul Singer thinks as much.

The Federal Reserve prints money to keep the economy going, or so the theory goes. In fact, most of what we consider “money” is created within the banking system. This kind of money is shrinking, and its responsible for sluggish economic growth and low employment.