US Debt Is Getting out of Control and That’s Good for Crypto

US Debt Is Getting out of Control and That’s Good for Crypto

The Congressional Budget Office predicts that US debt will rise to a level not seen since the 1940s over the next decade. Irresponsible fiscal policy is another example of the shortcomings of the current system compared to immutable crypto assets.

With the government going to spend $1 trillion more each year than it collects in taxes, the institution sees public debt rising to 98 percent of GDP by 2030. Some believe that such policies make the widespread introduction of a global currency that is free of government manipulation inevitable.

According to a Wall Street Journal report, the U.S. government is expected to spend $1.28 per $1 tax next year. The Congressional Budget Office (CBO) predicts that the deficit will be at its highest level since 1946 by the end of the decade.

The CBO bases its figures on current expenses and the amount of taxes. Republicans in Congress are keen to see individual tax cuts extended beyond 2025. President Trump is also reported to be making further cuts as part of his 2020 re-election campaign. This could mean that the debt is actually much larger.

In the meantime, the aging population is likely to have to spend more on health care and social security. CBO director Phillip Swagel commented on the growing US deficit:

“There’s not a crisis today… The longer we wait, the more difficult it gets.”

John H. Cochrane, in a 2011 article entitled “Inflation and Debt” for National Affairs, argued that out of control government debt often leads to inflation. Growing inflation makes hard assets like gold, Bitcoin and some other crypto assets more attractive.

Author: Marko Vidrih

Featured image credit: Pixabay

Published at Thu, 30 Jan 2020 12:39:39 +0000

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