The grand total of US debt has reached $222 trillion dollar, 300% of the GDP which is rising at the rate f $1 trillion every year. But nobody seems to care with ‘printing’ available as a solution. But with this money creation out of thin air has already turned the currencies into dust with hyperinflation, will Bitcoin emerge as the salvation.
Total Debt 300% of GDP
There seems to be no doubt that the US is on its way to financial ruin with the way the federal government is currently under $22 trillion dollars of debt. This is the largest debt in the history of the world.
The debt is climbing at a fast pace as over the past decade we have been regularly adding debt at the rate of $1.1 trillion dollars a year. Everyone sees and knows what is happening but apparently, no one cares.
But it's not all, this debt doesn’t include the 200 trillion dollars in unfunded liabilities which on addition gives us a staggering $222 trillion dollars in grand total.
It is not just the federal government, though it is the biggest perpetrator, but local and state governments are over 3 trillion dollars in debt, US consumers in more than 13 trillion dollars while the corporate debt has doubled since 2008’s financial crisis. All of this combined together marks 300 percent of GDP.
Boston University economics Professor Laurence Kotlikoff says the official end of the US is $20 trillion but the fiscal gap is much larger that is 10 times at $200 trillion. As for who will suffer, he says, customers will be bearing the brunt of the country’s financial ruin to the most part.
With the way things are going, we will keep on accumulating more debt and break all the previous records until the system gets under and eventually collapses. Add still, no one is coming up with a solution. But maybe they don't even need to as we recently reported how ECB chief economist and former Federal Reserve chair shared that they just have to press the PRINT button and ‘poof’ no debt.
The Horror of Hyperinflation
Hyperinflation is very much real and as economist Thomas Sowell puts it, “Hyperinflation can take virtually your entire life’s savings, without the government having to bother raising the official tax rate at all.”
The most recent and dire example of hyperinflation can be seen in Venezuela whose currency Bolivar is at above 2,000,000 percent inflation. For its citizens, foreign currency is the means of survival who are currently amidst the economic and political crisis as well, desperate for food and work that has over 40,000 Venezuelans crossing borders to Colombia every single day.
But it's not only Venezuela, but Zimbabwe’s annual inflation is also at about 50 percent and constantly growing.
Hyperinflation is the inevitable result of government keep on printing money until its losses all of its value. That’s what happened with both Zimbabwe and Venezuela.
Salvation is Bitcoin
And this is where Bitcoin and cryptocurrencies come into the picture that are already helping the Venezuelan people deal with its grievous situation.
With a limited supply of 21 million, Bitcoin can never run the risk of inflation. Moreover, it is unconscionable and censorship-resistant that goes beyond every border. It is an alternative currency that was created out of financial desperation after the recession of 2008.
The economy is at a precipice that if not in near-term than in the coming years could result in dire consequences that have already taken place in some countries, and this is where Bitcoin and cryptos can be expected to serve the needs of the consumers’ as a global or reserve currency.