Let $g(x)$ be infinite formal power series and $$g(x) = (1 + x)(1 + x^2)\cdots(1 + x^{2^k})\cdots$$ Show that $(1 - x) g(x) = 1$. My book gives following proof:
Using a fact that $(1 - x^k)(1 + x^k)=1-x^{2^k}$
$$ (1 - x) g(x) = (1 - x)(1 + x)(1 + x^2)\cdots(1 + x^{2^k})\cdots = (1 - x^2)(1 + x^2)\cdots(1 + x^{2^k})\cdots =$$ $$(1 - x^4)(1 + x^4)(1 + x^8)\cdots = (1 - x^8)(1 + x^8)(1 + x^{16})\cdots = 1 $$
Each step of reasoning shows that every term is "eaten" by multiplication. I do not see how it equates to 1 and I am not even close to accept it as a formal enough proof. If it was regular power series (numeric not formal) then I see how this proof could be easily turned in formal one by using limit but I do not see why formal power series of this form equates to $1$.
I have added logic tag because I do not understand proof technique used here. It is not any "inifitiary" proof technique which is widely used like limits or induction.