Why Bitcoin is a Life Raft Amid Rising US Debt | US Crypto News
The post Why Bitcoin is a Life Raft Amid Rising US Debt | US Crypto News appeared on BitcoinEthereumNews.com. Welcome to the US Crypto News Morning Briefing—your essential rundown of the most important developments in crypto for the day ahead. Grab a coffee and read about the implications of aging demographics in the US amid rising debt, its inadvertent impact on the country’s debt, and how all these bode for Bitcoin (BTC). Crypto News of The Day: US Debt Will Sink Fiat Bitcoin pioneer Max Keiser recently highlighted rising US debt risk, as indicated in one of the US Crypto News publications. Raoul Pal, founder of Real Vision, has echoed the sentiment, only differently. He sounded the alarm on the macroeconomic implications of aging demographics and ballooning debt. The former Goldman Sachs executive points Bitcoin as a “life raft” from the coming storm. “Over time, due to aging demographics, governments need to borrow more money to support GDP growth to pay interest on the debt… That debases the currency and lowers the denominator, optically making scarce assets more valuable,” Pal wrote in a post. He argues this dynamic is largely misunderstood but critical to understanding global markets. “It’s all demographics. It always has been,” Raoul Pal added. The US exemplifies this demographic debt trap. A shrinking working-age population must support a growing number of retirees, pushing government expenditures higher. The Congressional Budget Office (CBO) projected in February 2024 that US debt would reach 116% of GDP by 2034. If current policies remain unchanged, this is up from just over 100% today. To sustain such debt levels, governments are increasingly reliant on central banks to inject liquidity through tools like quantitative easing (QE). Pal highlights how this artificially props up debt markets, with the Fed effectively “printing” money via increased net liquidity. Alternatively, by nudging banks to absorb more government debt through regulation. The result is a steady debasement of…
The post Why Bitcoin is a Life Raft Amid Rising US Debt | US Crypto News appeared on BitcoinEthereumNews.com.
Welcome to the US Crypto News Morning Briefing—your essential rundown of the most important developments in crypto for the day ahead. Grab a coffee and read about the implications of aging demographics in the US amid rising debt, its inadvertent impact on the country’s debt, and how all these bode for Bitcoin (BTC). Crypto News of The Day: US Debt Will Sink Fiat Bitcoin pioneer Max Keiser recently highlighted rising US debt risk, as indicated in one of the US Crypto News publications. Raoul Pal, founder of Real Vision, has echoed the sentiment, only differently. He sounded the alarm on the macroeconomic implications of aging demographics and ballooning debt. The former Goldman Sachs executive points Bitcoin as a “life raft” from the coming storm. “Over time, due to aging demographics, governments need to borrow more money to support GDP growth to pay interest on the debt… That debases the currency and lowers the denominator, optically making scarce assets more valuable,” Pal wrote in a post. He argues this dynamic is largely misunderstood but critical to understanding global markets. “It’s all demographics. It always has been,” Raoul Pal added. The US exemplifies this demographic debt trap. A shrinking working-age population must support a growing number of retirees, pushing government expenditures higher. The Congressional Budget Office (CBO) projected in February 2024 that US debt would reach 116% of GDP by 2034. If current policies remain unchanged, this is up from just over 100% today. To sustain such debt levels, governments are increasingly reliant on central banks to inject liquidity through tools like quantitative easing (QE). Pal highlights how this artificially props up debt markets, with the Fed effectively “printing” money via increased net liquidity. Alternatively, by nudging banks to absorb more government debt through regulation. The result is a steady debasement of…
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