This week, the U.S. national debt surpassed $35 trillion for the first time ever. Moreover, America has added around $12 trillion in federal debt since 2020.
To put it into perspective, the U.S. has added an average of $280 billion of federal debt every month since January 2020.
The country now has around $105,000 in federal debt for every person living in the United States, observed the Kobeissi Letter on July 30 before asking, “How can this possibly end well?”
Leading presidential candidates Kamala Harris and Donald Trump have said very little about the nation’s huge deficits while campaigning, which suggests that debts will continue to escalate over the next four years.
According to usdebtclock.org, federal debt is projected to hit a whopping $46 trillion by 2028. The Kobeissi Letter commented on the crisis:
According to the Congressional Budget Office, national debt is poised to top $56 trillion by 2034, as rising spending and interest expenses outpace tax revenue.
Social Security and Medicare spending, coupled with persistently high interest rates, have made it difficult to reduce America’s debt mountain.
Michael Peterson, chief executive of the Peter G. Peterson Foundation, which promotes fiscal restraint, told the New York Times, “We can’t keep pretending this is not a problem.”
There has been a lot of talk about a strategic Bitcoin reserve to back the US dollar with both independent presidential candidate Robert F. Kennedy Jr. and Senator Cynthia Lummis proposing such systems recently.
On July 30, the Wyoming senator said:
Bitcoin adoption solutions firm JAN3 observed that the debt figure is 1.6 million times the size of the total Bitcoin supply.
However, using BTC to reduce national debts would likely involve liquidating the asset, which the US government has already been doing this week. As we can observe, moving small amounts of the asset can cause big waves for crypto markets.
The post US National Debt Hits Record $35 Trillion, Can a Bitcoin Reserve Strategy Help? appeared first on CryptoPotato.
To put it into perspective, the U.S. has added an average of $280 billion of federal debt every month since January 2020.
The country now has around $105,000 in federal debt for every person living in the United States, observed the Kobeissi Letter on July 30 before asking, “How can this possibly end well?”
Skyrocketing National Debt
Leading presidential candidates Kamala Harris and Donald Trump have said very little about the nation’s huge deficits while campaigning, which suggests that debts will continue to escalate over the next four years.
According to usdebtclock.org, federal debt is projected to hit a whopping $46 trillion by 2028. The Kobeissi Letter commented on the crisis:
According to the Congressional Budget Office, national debt is poised to top $56 trillion by 2034, as rising spending and interest expenses outpace tax revenue.
Social Security and Medicare spending, coupled with persistently high interest rates, have made it difficult to reduce America’s debt mountain.
Michael Peterson, chief executive of the Peter G. Peterson Foundation, which promotes fiscal restraint, told the New York Times, “We can’t keep pretending this is not a problem.”
Bitcoin Is The Answer … Or Is It?
There has been a lot of talk about a strategic Bitcoin reserve to back the US dollar with both independent presidential candidate Robert F. Kennedy Jr. and Senator Cynthia Lummis proposing such systems recently.
On July 30, the Wyoming senator said:
Bitcoin adoption solutions firm JAN3 observed that the debt figure is 1.6 million times the size of the total Bitcoin supply.
However, using BTC to reduce national debts would likely involve liquidating the asset, which the US government has already been doing this week. As we can observe, moving small amounts of the asset can cause big waves for crypto markets.
The post US National Debt Hits Record $35 Trillion, Can a Bitcoin Reserve Strategy Help? appeared first on CryptoPotato.
![[DK]](/data/avatars/s/57/57999.jpg?1720990206){kind=avatar}
