drgo on Nostr: While the US dollar has some pretty negative headwinds, it’s intellectually ...
While the US dollar has some pretty negative headwinds, it’s intellectually dishonest to deny the fact that the dollar network is really big.
Is the federal debt & deficit sustainable? Is this the right question?
Perhaps a better question is: “how in the world is $36T debt and $2T deficit not pushing treasury rates through the roof?”
Or “how much longer can the US get away with its debt & deficit levels?”
Surely these questions have answers from first principles. But it’s lazy to assume immediate doom when all experience has taught us otherwise…
I hypothesize that the only brake on continued US fiscal profligacy will be bitcoin and to a lesser extent gold…and rehypothecation games will eventually be played with bitcoin to delay its effect on the dollar.
As bad as Gary was for bitcoin, at least he didn’t permit banking games with the underlying bitcoin.
Is the federal debt & deficit sustainable? Is this the right question?
Perhaps a better question is: “how in the world is $36T debt and $2T deficit not pushing treasury rates through the roof?”
Or “how much longer can the US get away with its debt & deficit levels?”
Surely these questions have answers from first principles. But it’s lazy to assume immediate doom when all experience has taught us otherwise…
I hypothesize that the only brake on continued US fiscal profligacy will be bitcoin and to a lesser extent gold…and rehypothecation games will eventually be played with bitcoin to delay its effect on the dollar.
As bad as Gary was for bitcoin, at least he didn’t permit banking games with the underlying bitcoin.