Key Points
- US debt crisis requires a new strategy and Bitcoin may be a potential solution.
- Robert Kiyosaki, Elon Musk, and US Senator Cynthia Lummis have expressed concerns over the US debt and the value of the US dollar.
The US economic outlook, particularly concerning the debt crisis, has been a major concern recently, especially with the 2024 general elections approaching. Both political parties acknowledge that a new strategy is necessary to tackle the escalating debt crisis.
Additionally, the US dollar is gradually losing its value as the BRICS nations are increasingly using their own currencies for international trade.
High Government Spending
Tech billionaire Elon Musk has suggested that excessive government spending is pushing the country towards bankruptcy. The US national debt is expected to increase by $16 trillion in the next decade. The US government currently spends about $1 trillion annually to pay off interest on the $35.3 trillion debt. This, according to some Wall Street analysts, is significantly contributing to dollar inflation.
Bitcoin as a Solution
Robert Kiyosaki, a renowned author and investor, believes the real issue in the US is the debt crisis, a problem that none of the political parties seem capable of solving. Kiyosaki suggests that the only solution for investors dealing with unsound money is Bitcoin, Gold, and Silver.
Kiyosaki further emphasizes that these three commodities are real money and are likely to withstand the test of time. The idea of using Bitcoin to prevent the US from collapsing has already been advocated by US Senator Cynthia Lummis at the 2024 Bitcoin conference. Lummis proposed that the US should acquire at least 1 million Bitcoins in the next five years, an amount almost equivalent to what Satoshi Nakamoto holds.
To address the issue, Lummis suggested that the US government should aim to hold more than 1 million Bitcoins in the next 20 years. With the expected exponential rise in the price of Bitcoin in the coming years, the country could potentially pay off its debt while preserving its Gold reserves.
Future Economic Outlook
The US Federal Reserve is expected to make the first interest rate cut on September 18. This move could allow US investors easier access to lower interest rate money, thereby enhancing their international competitiveness.
The European Central Bank (ECB) has already initiated several interest rate cuts to boost economic activity. Moreover, the escalating crisis between Russia and NATO could potentially cause further difficulties for economies around the world.
