The U.S. Department of Defense has paid $51,600 to the aerospace giant Boeing for a $300 trash receptacle, according to a new report from an American think tank.

The Pentagon paid the staggering sum after the trash container became designated as a non-commercial item, reports Responsible Statecraft, which is the online magazine for the Quincy Institute.

“Until 2010, Boeing charged an average of $300 for a trash container used in the E-3 Sentry, a surveillance and radar plane based on the 707 civilian airliner.

When the 707 fell out of use in the United States, the trash can was no longer a “commercial” item, meaning that Boeing was not obligated to keep its price at previous levels.”

The report cites a weapons industry source who spoke on the condition of anonymity, and follows a CBS News investigation that found Raytheon Technologies has increased the cost of its stinger missiles from $25,000 to over $400,000 per unit.

In response to that revelation, a bipartisan group of Senators led by Bernie Sanders sent a letter to Defense Secretary Lloyd Austin demanding an update on the department’s efforts to investigate corporate price gouging.

“The DOD can no longer expect Congress or the American taxpayer to underwrite record military spending while simultaneously failing to account for the hundreds of billions it hands out every year to spectacularly profitable private corporations.”

The reports come as the total #US debt surpasses $32 trillion, with $572 billion added to the national #debt in the last two weeks alone.

In recent years, the United States has faced a significant challenge as its outstanding public debt has surged, reaching a staggering $32 trillion by June 16th, with an additional $590 billion added by July 20th. Famed billionaire investor, David Rubenstein, warns that managing this mounting debt may necessitate inflation, potentially exacerbating income inequality in the nation. As the wealth gap widens, a growing concern arises over the escalating clash between the affluent and the less fortunate, deepening disparities among different age groups and raising questions about the sustainability of the American dream. To tackle these pressing issues and secure the country's future, Rubenstein advocates for fresh perspectives, diverse leadership, and adaptation to the evolving global economic landscape.

The Looming Challenge of Income Inequality:

With the rapid accumulation of public debt, income inequality in the United States has risen over the past few decades. The resulting disparity poses a significant threat to the principle of equal opportunity that underpins the American dream. Rubenstein highlights the urgent need to address this issue to prevent the widening chasm between the wealthy and the less privileged.

Age Disparities and Underfunded Programs:

Another critical aspect contributing to income inequality is the growing disparity between older and younger generations. As life expectancy increases, older individuals face the challenge of retirement benefits failing to keep pace with their evolving needs. Underfunded programs and inadequate support for retirees can exacerbate conflicts between different age groups, leading to further income inequality.

The Call for a New Generation of Leaders:

To steer the country towards a more equitable future, Rubenstein emphasizes the necessity of fresh ideas and innovative leadership both in American businesses and Congress. He advocates for increased involvement of younger generations in government and corporate boards to introduce diverse perspectives and promote progressive policies that address income inequality effectively.

Adapting to the Changing Global Economic Landscape:

The evolving global economic landscape, with countries like China and India rapidly advancing, has significant implications for the United States. As these nations catch up and potentially surpass the U.S. economy, America's lifestyle and wealth could be impacted. To ensure continued growth and prosperity, Rubenstein stresses the importance of focusing on economic efficiency and equitable wealth distribution.

In Summary:

Addressing the mounting debt and income inequality in the United States requires a multi-faceted approach. By tackling these issues head-on through innovation, inclusivity, and forward-thinking leadership, the nation can secure a brighter future. It is crucial for the United States to adapt to the changing global economic landscape and focus on economic growth while ensuring equitable distribution of wealth to foster prosperity for all its citizens. Only by embracing fresh ideas and empowering the younger generation to play an active role in shaping the nation's future can the United States overcome its challenges and maintain its position as a beacon of opportunity and progress. #UnitedStates #us #usa #debt $BTC #china

The United States' national debt has been a subject of concern for economists, policymakers, and investors for many years. As the debt continues to rise, questions arise regarding its potential impact on various sectors, including the cryptocurrency market. In this article, we review the state of US debt and analyze the potential consequences for the crypto market in the event of a default.

Understanding US Debt:

The US national debt represents the accumulated amount of money that the federal government owes to its creditors. It includes both publicly-held debt, which is owed to individuals, institutions, and foreign governments, and intra-governmental debt, which is money the government borrows from its own agencies such as the Social Security Trust Fund. The debt is primarily financed through the issuance of Treasury bonds, notes, and bills.

Implications for the Crypto Market:

Flight to Safe Havens: In the event of a US default, investors may seek safe-haven assets to protect their wealth. Historically, during periods of economic uncertainty, traditional safe-haven assets like gold and government bonds have attracted investors. While cryptocurrencies like Bitcoin have been touted as a digital safe-haven asset, their price dynamics during a US debt default remain uncertain.

Increased Market Volatility: A US debt default would likely cause significant market volatility across various asset classes, including cryptocurrencies. Investors' confidence would be shaken, leading to increased uncertainty and potentially triggering panic selling. Consequently, cryptocurrencies could experience heightened price volatility as market participants seek to manage their risk exposure.

Regulatory Response: A US debt default could prompt regulators to implement stricter measures on the cryptocurrency market. Concerns about financial stability and investor protection may lead to increased scrutiny, regulatory oversight, and potential restrictions on cryptocurrency exchanges and transactions. This could impact liquidity and market participation.

Perception of Digital Assets: A US default might influence the perception of digital assets in the broader financial landscape. Skepticism towards traditional financial systems and fiat currencies could drive increased interest in cryptocurrencies as an alternative form of value storage. However, negative sentiment surrounding the overall economic environment may dampen market sentiment and slow down the adoption of cryptocurrencies.

Global Economic Impact: The US is a major player in the global economy, and a default could have far-reaching consequences. A global economic downturn or financial crisis triggered by a US default would likely impact the cryptocurrency market. Cryptocurrencies may face increased scrutiny and regulation as policymakers seek to stabilize financial systems.

Conclusion:

While the likelihood of a US debt default remains uncertain, it is essential to evaluate the potential implications for the cryptocurrency market. A default could introduce increased volatility, regulatory measures, and changes in investor sentiment. As with any investment, it is crucial to carefully assess risks, diversify portfolios, and remain informed about market dynamics. In the event of a US debt default, the crypto market may experience both challenges and opportunities as investors seek alternative assets and navigate the changing financial landscape.

#US #debt #sec #crypto #interestrate

Although an initial deal was reached, the US’ debt issues are still a growing concern among investors.

Watch that little blue line on Google Trends for “bitcoin” hit the ceiling if the U.S. defaults on its debt. BTC might suffer at first as markets go risk-off, but could easily shine in another global financial crisis.

House Republicans reached a tentative deal with President Joe Biden’s White House over the Memorial Day Weekend. The deal would help raise the debt limit imposed by Congress on federal borrowing.

But it isn’t yet assured. House Democrats are unhappy with some of the last-minute concessions made by the Biden Administration. Meanwhile, Republicans may not back the bill born of the recent debt limit deal. U.S. Senator Rand Paul (R-KY) says he will not be voting for it in the Senate.

U.S. Debt Deal Reached, but not Final

The Treasury could begin running short to meet bills due as soon as June 5th if the debt ceiling isn’t raised:

“In the United States, a default could cause financial markets to freeze up and spark an international financial crisis. Analysts say millions of jobs would vanish, borrowing and unemployment rates would jump, and a stock-market plunge could erase trillions of dollars in household wealth. It would all but shatter the $24 trillion market for Treasury debt.”

So what would happen to Bitcoin and the price of other cryptocurrencies if the U.S. defaults on its obligations? A debt default would put the economy in an enormous jam. That could easily push crypto prices down across the board.

Default Would Tank Crypto Prices… at First

Crypto and stock prices were in correlation for 18 months when crypto winter thawed in January. Throughout the first half of 2023, the correlation has remained significant.

What if the economy locks up, stocks take a dive, and there’s another global financial crisis? Crypto prices moving in correlation with stocks would be apt to crater. So if the U.S. defaults instead of extending the debt ceiling soon, the macro outlook for crypto prices will likely be very bearish.

On the other hand, a U.S. default would throw financial markets into total disarray. That could make Bitcoin look much better by comparison. In fact, it would tend to support the thesis of Bitcoin permabulls that centrally managed financial systems inevitably disappoint their users with corruption and mismanagement.

So after an initial drop in crypto prices, while markets go risk-off, Bitcoin could get some legs under it for a stout bull run. That’s what happened after the series of major bank failures in March.

#debt #bitcoin

$BTC $ETH $BNB

The United States is edging closer to a potentially disastrous Doomsday scenario as the debt ceiling looms large on the horizon. This could have a significant impact on the world of Bitcoin, although it's difficult to predict when exactly this will happen.

In a razor-thin decision, the Republican-controlled House of Representatives narrowly passed a bill yesterday to raise the debt ceiling. The proposal, championed by Kevin McCarthy, the House's chairman, was met with a mixed response.

The bill calls for an increase in the debt ceiling by a massive $1.5 trillion, but it comes with a catch: significant cuts must be made to government spending. As a result, the bill is unlikely to get far in the Senate, which is currently led by the Democrats. Furthermore, President Joe Biden has already hinted that he will veto the bill, further complicating matters.

Time is of the essence, however. Experts warn that Doomsday could be just a few weeks away, and if the US Treasury is unable to pay its bills, the consequences could be dire. A speedy resolution is therefore urgently needed to avert catastrophe.

How Will The US Debt Ceiling Issue Affect Bitcoin?

The debt ceiling debate has significant implications for Bitcoin and the wider crypto market, particularly regarding liquidity. Bitcoin is often referred to as a "liquidity sponge" as it tends to rise in response to loose monetary policies from central banks and falls when liquidity is withdrawn from the financial system.

Macro analyst Ted (@tedtalksmacro) argues that global liquidity is a key driver of Bitcoin's price, with recent BTC price rallies correlating with an increase in global liquidity. For example, the US Federal Reserve's expansion of its balance sheet through the Bank Term Funding Program (BTFP) during the banking crisis boosted Bitcoin's price.

China's post-Zero-COVID economic reboot also relied on loose monetary policy to drive growth, which had a positive impact on Bitcoin's price. The current debt ceiling crisis has also contributed to Bitcoin's recent price increase, as the US Treasury has had to dip into its cash reserves.

As a result of the debt ceiling, the US Treasury has been forced to use its cash reserves from the Treasury General Account (TGA) in recent months. This has led to an increase in liquidity as the balance of the TGA falls, which can have significant consequences. Macro analyst Ted has discussed the potential impact of this on Bitcoin and the crypto market.

The Treasury has mitigated the negative liquidity impact of the Fed’s QT [Quantitative Tightening] efforts to date –> total liquidity injected via the TGA has outpaced the total liquidity withdrawn by QT. Since the commencement of QT:

QT (balance sheet) = -$644B in liq.

TGA reserves = +$780B in liq.

In other words, without the US Treasury, the Fed’s QT would have already hit markets much harder. “Instead, the TGA has supported a market conducive to higher risk assets (liquidity),” Ted added.

Raising the debt ceiling will require the US Treasury to replenish its TGA reserves. This will have a negative impact on Bitcoin and cryptocurrency because the Fed's QT will no longer be mitigated. Ted concludes:

If QT draws to a close before TGA reserves are built back up –> sideways/up.

If QT continues and debt ceiling raised –> down/sideways

Ultimately, QT takes a stronger grip on liquidity when the debt ceiling is raised and that points south, unless the Fed winds up QT….

Notably, liquidity from other central banks around the world is also playing a role and may help to mitigate the impact, as Ted stated in a tweet today.

twitter tedtalksmacro@tedtalksmacro

Digital Gold Narrative Grows

In the long run, as the credit crunch leads to an economic disaster, monetary policy will revert to Quantitative Easing (QE). This will boost bitcoin and gold, which have already shown stronger association in recent weeks, according to Bitcoinist.

Renowned trader Peter Schiff commented on the debt ceiling:

Any deal to raise the #DebtCeiling isn’t good news. It means the U.S. will continue not paying its bills. So the debt will continue to grow and the Fed will continue to create inflation to pay for it. It’s bad news for the U.S. economy, dollar and bonds and good news for gold.

twitter Peter Schiff@PeterSchiff

At press time, the BTC price stood at $28,972.

BTC price, 4-hour chart | Source: BTCUSD on TradingView.com

#BTC #bitcoin #Binance #btcsoaring #debt

Source: bitcoinist

image Source: pixabay

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Disclaimer

The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.