Amid the tense political climate in the US, financial analyst Michael A. Gayed recently opined that a national debt exceeding $35 trillion is a greater threat to democracy than political leadership. treat. Gayed emphasized that the pace of debt growth outpaces both tax revenues and inflation, creating a precarious financial environment.
The ratio of US federal debt to GDP, which has increased from 52.65% in 1960 to 122.33% today, further illustrates the sustainability of the country's fiscal policies. The possibility of a severe economic recession becomes even more apparent as debt continues to grow uncontrollably.
The US national debt has now reached $34.9 trillion. Debt per citizen is $103,568, while debt per taxpayer has increased to $266,953. The US federal budget deficit is also significant, with the official figure being $1.8 trillion and the actual deficit exceeding $2 trillion.
Reacting to Gayed, Erik Voorhees, founder of ShapeShift and a prominent voice in the crypto community, emphasized the severity of the situation. Voorhees asserts that growing debt, regardless of who is president, is an inevitable economic threat. He predicted that the unrelenting growth of the national debt would lead to a catastrophic collapse of the bond market, causing widespread financial ruin.
Voorhees also believes that the current political context, represented by leaders such as Trump and Biden, cannot alleviate this situation. A projected annual debt increase of more than $1 trillion under any reasonable scenario suggests a worrying financial outlook. This unsustainable debt growth, according to Voorhees, is a greater threat to democracy than any political figure.
The consequences of such economic collapse are profound. Voorhees envisions a scenario in which society can navigate through this chaos with dignity and principle, perhaps becoming more prosperous. However, this will be significantly different from the concept of large nation-states in the 20th century. He argues that Bitcoin or similar decentralized assets are key to this transition. Through its intrinsic economic game theory, Bitcoin can prevent currency downturns that help major nations expand.
Bitcoin's status as a more sustainable asset than fiat currencies, which is yet to be fully realized, could be pivotal in this transition. Voorhees believes that as Bitcoin is seen as a more stable store of value across generations, it could limit the expansion of major nations by limiting their ability to inflate their currencies.
If the Republicans win in November, Voorhees thinks Trump and Vance are unlikely to significantly reduce debt, but they could create an environment where cryptocurrencies can flourish. By doing so, they will allow the roots of cryptocurrency to become deeply embedded in culture and economics, potentially strong enough to withstand expected financial fluctuations.
“The best thing Trump/Vance can do during their term, since they cannot (and will not) significantly reduce their debt situation, is create four years of space to allow crypto to grow, not oppressed.”
Voorhees' views reflect a broader sentiment within the crypto community, which sees decentralized digital assets as a potential safeguard against the economic instability of national debts. giant. The ability of the cryptocurrency industry to provide an alternative to traditional monetary systems could be important in dealing with future financial challenges.
Join Bitcoin Magazine's Telegram: https://t.me/tapchibitcoinvn
Follow Twitter (X): https://twitter.com/tapchibtc_io
Follow Tiktok: https://www.tiktok.com/@tapchibitcoin
Thach Sanh
According to CryptoSlate
