If we "balanced the budget" and cut government spending the financial system would fall into a deflationary collapse. Why?

Because dollars are lent into existence, at interest. If that's the case, then where do the dollars come from to pay the interest? The answer is, more debt.

Therefore, deficit spending (or lending in general) has to constantly increase, or else the system collapses as the currency supply falls relative to the debt.

Mike Maloney explains this visually in his video "The Biggest Scam In The History Of Mankind (episode 4)", which I'll link to below.

The bottom line is that the traditional financial system is flawed by design, and unsustainable. If only there were a better alternative... 🤔