Financial commentator and Bitcoin pioneer Max Keiser originally said these simple yet profound words.

A Ponzi scheme is an unsustainable scam that relies on a continuous influx of new money to keep it going. The scheme collapses if the flow of new money slows down or tapers.

Many believe the Federal Reserve is running what amounts to a giant Ponzi scheme.

That's because the US government's obscene spending and skyrocketing debt have reached an inflection point where the whole system will collapse unless the Fed pumps an ever-increasing amount of new fake money into the system.

Government spending is the leading cause of the problem. However, the government cannot even slow the growth rate of spending, let alone cut it.

Here's why.

The biggest expenditures for the US government are so-called entitlements. It's unlikely any politician will cut these. On the contrary, I expect them to continue growing as the last Baby Boomers enter retirement in 2031.

With the most precarious geopolitical situation since World War 2, so-called defense spending seems unlikely to be cut. Instead, it is all but certain to increase.

Income Security is a catch-all category for different types of welfare. That's unlikely to be cut too.

Efforts to reduce expenditures will be meaningless unless it becomes politically acceptable to cut entitlements, national defense, and welfare.

Further, interest expense is exploding higher.

The federal interest expense recently exceeded $1 trillion for the first time and is shooting higher. That means the interest expense is already bigger than defense spending and everything else in the budget except for Social Security, which it will also likely exceed soon.