In a recent interview with Kitco News, Max Borders, author of The Decentralist, revealed that the US economy is on the brink of collapse. He also revealed that Bitcoin and gold were going to be key instruments in avoiding the potential ramifications of future economic calamities.
Borders explains the problems of the American economy
Borders thinks the United States could face economic difficulties worse than the Great Depression.
Max explained that the biggest challenge for the US economy is that its debt is 130% of GDP. Globally, Borders reveals that there is over $300 trillion in debt and leverage, while only $100 trillion is in production.
The borders also emphasize that the Federal Reserve is painted in a tight corner. Citing the example of the coronavirus pandemic, Borders reveals that the Fed can print money to provide relief, only to raise interest rates to curb the resulting inflation. It also highlights the unintended consequences of attempting to intervene in macro-financial systems.
Another factor at play is the clash between the political class and the central bank. According to Borders, while monetary spending to ease conditions during the pandemic was politically popular, it was not fiscally responsible.
Why Bitcoin and Gold Could Be the Answer
The author reveals that Bitcoin and Gold could be the answer to solving the economic conundrum. According to Max, people have lost faith in institutions. Bitcoin was launched in 2009 in response to the 2008 real estate crash.
The real estate crash revealed the collusion between the government and greedy corporations. Bitcoin can bring institutional change and provide an alternative to traditional institutions. He also criticized whales for treating crypto as a risky asset.
He believes Bitcoin can be an excellent store of value and hedge against inflation if used correctly by investors. Cryptocurrency Volatility Will Decline With Increasingly Common Adoption
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