Table of Contents
- An unfair downgrade?
- Of course we can print money out of thin air, we’re the US government
- From the dollar sinking ship to the Bitcoin liferaft
According to Bank of America analyst Michael Hartnett, the US government debt is predicted to rise to $50 trillion by 2033.
This is the astonishing and ridiculous state our financial system has got into, and the vast majority of US citizens will probably just shrug their shoulders and carry on.
An unfair downgrade?
That the US was recently downgraded from triple A to double A+ was heavily lamented in US government and banking circles. Treasury Secretary Janet Yellen called it “puzzling”, “entirely unwarranted”, and a “flawed assessment”.
Jamie Dimon, CEO of JP Morgan, said that the downgrade was “ridiculous” and that “it doesn’t really matter”, and that the markets would decide rather than the Fitch rating agency.
Both of these heads of finance were hardly going to say that Fitch was absolutely right to make the downgrade, and so their hollow protests were probably to be expected. However, many will take them at their word and wonder why Fitch made this awful decision…
Of course we can print money out of thin air, we’re the US government
So the already impossible and insurmountable US debt figure is set to rise from the current $32.5 trillion to around $50 trillion over the next 10 years. Given that this is a figure produced by a banker, perhaps the eventual figure might even be much higher.
In congress, there are those who revel in the special privilege that the US wields with the dollar as the world’s reserve currency. Brad Sherman is a staunchly anti-crypto congressman, always using his power and influence to malign and demean Bitcoin and cryptocurrencies.
When accusing “crypto bros” of printing $1 trillion from thin air during a key congressional committee, he speculated that these same people might accuse the US government of doing the same thing. He said “perhaps we do” and vindicated the act by saying “we’re the US government”. When certain congressmen/women and senators have such a view, it is no wonder the US is in the impossible situation it is in.
From the dollar sinking ship to the Bitcoin liferaft
So, we know that the US is going to add to its debt mountain over the next 10 years at least, as it spends like a drunken sailor, injecting scandalous amounts of new currency into the system, leading to currency debasement on a massive scale and leaving its citizens to shoulder the cost.
Bitcoin on the other hand has a fixed supply built into its code. As its halving approaches in April of next year and its supply is cut in half, expect a tsunami of wealth to leave the sinking ship which is the dollar and climb aboard the Bitcoin liferaft.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.