Crypto is more attractive than ever.
US national debt exceeded $30 trillion for the first time on Tuesday, spurred on by high borrowing during the Covid-19 pandemic, according to data from the US Treasury Department.
The staggering amount of Debt and the Massive size of the US Govt and their spending makes buying Crypto more attractive than ever. The ability to continually prop up the dollar and drive the economy via the printing press is weakening, Crypto is becoming more main stream and those Crypto’s like Bitcoin and Knights with limited supply are the most attractive, there can only ever be 21m Bitcoin and Knights is locked to a firm 5m, they are now a much better value store than the USD, Knights (a DAO Unicorn) is the 1st that will power growth through earnings.
The size of the debt is not the only issue, the mix of creditors also gives reason to be concerned for the Dollars future.
Japan and China remain the top foreign creditors, holding $1.3 trillion and $1.08 trillion in US Treasuries respectively, and are owed interest on all the money that has been borrowed. Nearly $8 trillion of the US’ debt is owed to foreign entities, which – aside from Japan and China – also include major creditors like the United Kingdom, Luxembourg, Ireland, Brazil, Canada, France, India, and Belgium, as well as Taiwan and Hong Kong.
A further $6.5 trillion is owed by the US federal government to itself, mostly to Social Security trusts and the Military Retirement fund. Over the course of the pandemic, the Federal Reserve also doubled its balance sheet to $8.9 trillion by aggressively buying trillions of dollars in Treasury bonds and securities.
The $30 trillion mark “arrived years earlier than previously projected,” according to the New York Times, due to government coronavirus programs which “funded expanded jobless benefits, financial support for small businesses and stimulus payments” – all of which was paid for with borrowed money.
David Kelly, the chief global strategist for JPMorgan Asset Management, told CNN that the debt means the US is “going to be poorer in the long term” and claimed “American taxpayers will be paying for the retirement of the people in China and Japan, who are our creditors.”
Peterson Foundation CEO Michael Peterson, however, explained that the “structural problems we face fiscally existed long before the pandemic” and that Covid-19 merely “exacerbated the problem.”