It has become commonplace to normalize the extremity of fiat. The last such instance was in September when the federal government broke another record by crossing the $33 trillion national debt threshold. A decade ago, the USG’s outstanding borrowings have already outpaced the US’ annual GDP.
The Congressional Budget Office (CBO) now projects a 2% federal debt increase per year. The established dynamic is one of increased borrowing because there is simply no way to patch up budget deficits with tax revenue alone. This year alone, the USG had to pay $711 billion on net interest payments.
Ultimately, the Federal Reserve, as the purveyor of money, has to keep increasing its balance sheet so the USG can keep up with its debt obligations. Inevitably, the ex nihilocreation of new money leads to devaluation of the dollar, the world’s dominant measurement of value...
To read more visit Bitcoin Magazine.
Subscribe to our evening newsletter to stay informed during these challenging times!!