Bitcoin is the check and balance on deficit spending that can prolong Western civilization.
America’s debt situation is critical at $175 trillion.
The Western world is headed for a sovereign debt crisis far worse than 2008.
Coinbase CEO Brian Armstrong believes Bitcoin can serve as a critical counterbalance to excessive government spending, potentially safeguarding Western economies from a looming debt crisis.
His remarks were made in response to a dire economic forecast by analyst Balaji Srinivasan, who warned of a potential sovereign debt crisis worse than 2008. In the post, Balaji highlighted the critical nature of the U.S. debt situation, stating that no election can pay off its $175 trillion debt.
#Bitcoin is the check and balance on deficit spending that can prolong western civilization It is an investment, but it’s also a vote for sanity https://t.co/8nvf77brrY
— Brian Armstrong (@brian_armstrong) July 23, 2024
According to Balaji, he believes the U.S. government has been lying about the economy and would resort to printing a lot of currency to seek a temporary solution. Meanwhile, Balaji shared data to prove his point, beginning with the Fed’s 2023 emergency loans, which he claimed dwarfed what they borrowed in 2008.
The analyst believes the government’s recent actions have plunged the banking system into a critical situation, citing the selling of billions in bonds to financial institutions and then devaluing them with surprise rate hikes.
Balaji noted that the U.S. government has borrowed more funds under the current administration than during the COVID-19 pandemic. According to him, the U.S. government is borrowing historical sums of money at 5% rates, displaying signs of desperation. According to Balaji, interest payments on the national debt have become the most significant government expense because of the borrowing.
In the lengthy post, Balaji cited several other factors affecting the U.S. debt situation, including the increased devaluation of the U.S. Dollar, more treasury dumping by China, increased gold buying by the BRICS, and greater dollarization than ever.
Additional factors Balaji included in his analysis are declining sanction efficacy and a peacetime debt increase approaching World War 2 figures. According to the analyst, these are the reasons behind the critical state of the U.S. economic situation, with no clear solution in sight.
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