BodhiSATtva on Nostr: https://m.primal.net/OxgK.jpg GM US household debt hit an all-time record and jumped ...
GM
US household debt hit an all-time record and jumped by $93 billion in Q4 2024 to a record $18 trillion.
It has been driven by a $45 billion surge in credit card debt, hitting an all-time high of $1.2 trillion. Household debt as % of disposable income is 87%.
Inflation is erasing the middle class.
Those who don't own assets will be financially rekt by inflation over the next decade. There is simply too much Government debt that must be issued and rolled over at higher interest rates, and not enough natural demand for it.
The economy can be described as:
consumers + investors/savers + government = "the economy".
As the government debt has grown to unsustainable levels, and orders of magnitude higher levels of money creation go to creating money for servicing that debt instead of private sector "productive loans" that flow more broadly to savers and investors... we have a problem. That's where we are now.
When you don't own Bitcoin, government debt is your problem. Debt stacks up, spending new units of currency into existence, debasing your relative purchasing power and eroding your ability to pay for rent, food, and groceries. The prices don't really go up, the purchasing power of the currency goes down... because all prices are relative. This is the natural state of inflationary currency (currency regimes that manage crises by creating new units of currency and injecting them into the system).
Bitcoin is highly correlated to global liquidity-- the more they print into the fiat system, the higher it gets valued... because it has a fixed supply, and value is relative.
By owning Bitcoin, government debt becomes your greatest asset. Debt means more dollars. Bitcoin is essentially an insurance policy against reckless government spending. The most serious threat to Bitcoin would be a balanced budget and no deficit spending. But, let's be real....
Printer is coming. Saving anything you can in Bitcoin for the long term is the escape hatch.
The current total unrealized losses on U.S. banks' balance sheets as of the first quarter of 2025 are reported to be $329 billion. Bank of America has over 100B in unrealized losses alone.
What does that mean? It means they don't have your money. Because the second you deposit it in the bank, it becomes their operational capital. While the bank uses your money for its operations, you retain a legal claim on that money. The bank has a fiduciary duty to manage those funds responsibly, ensuring they can return the principal amount to you upon demand or at the agreed maturity date for time deposits.
Currently, they are insolvent if all depositors demanded delivery.
In practice, the money you deposit is part of the bank's operational capital, but legally and morally, it's still yours, with certain protections in place.
Those protections are as follows--
The current legally mandated reserve ratio for U.S. banks is 0%. This policy has been in place since March 26, 2020, when the Federal Reserve reduced reserve requirement ratios to zero percent for all depository institutions.
Have a great day.
#bitcoin
#DebtCrisis
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