Key facts:
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Kiyosaki and Saylor are grateful for the existence of Bitcoin.
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For macroeconomist Henrik Zeberg the US economy is heading towards severe deflation.
The present and future are not encouraging, at least as far as the US economy is concerned. This is how Twitter owner Elon Musk and writer and investor Robert Kiyosaki see it, as well as a group of analysts who do not hide their concerns about what is to come for the world that depends on the dollar. That is why most of them see bitcoin (BTC) as the best money available today.
For some time now, Musk is manifesting your concern about excessive spending by the United States government and its practice of increasing the money supply faster than the production of goods and services, thus generating inflation.
Now the CEO of Tesla is showing himself again disagree on U.S. monetary policy. This time he said that “at the current pace of government spending, The United States is rapidly heading towards bankruptcy“Excessive government spending is what causes inflation.”
Musk was reacting to data shared by an X user, which details that the US government is planning to add another $16 trillion to the national deficit by 2035. This will further aggravate the country’s financial situation, as the South African businessman who has become an American citizen suspects.
Musk’s concern coincides with what was expressed by macroeconomist Henrik Zeberg who speaks precisely about the The Federal Reserve’s “biggest monetary policy mistake in history” (Fed) of the United States.
Zeberg believes the Fed’s current stance on interest rates is misguided and could lead to severe deflation and a deep recession. “It’s a mystery to me what the Fed is looking at, and it’s going to cause severe deflation,” he said.
For the macroeconomist, the US economy is showing signs of stagnation and from his point of view The Fed’s decision to keep interest rates so high is wronga level not seen before the last two recessions.
He believes that the current situation is even more dire, with economic indicators showing weaker performance than before those past recessions. The economy is therefore threatened by a policy-induced deflationary spiral with devastating financial consequences.
Zeberg believes the Fed’s aggressive stance to combat inflation may no longer be necessary and warns that such high yields, combined with high interest rates, are obstacles that would prevent the economy from being rescued in time, leading to devastating financial consequences.
“Why not a short recession and a relatively small pullback in the markets? Because we have the biggest bubble and the biggest market distortion ever seen, created by money printing. And we have rampant speculation in the Cryptocurrency market. We can see all the previous bubbles, but not the one we are in.”
Henrik Zeberg, American macroeconomist.
The analyst adds that “You can’t print wealth”so for that reason he suspects that the markets will once again teach a lesson to academics and the Federal Reserve. As a result, what is coming would be “the worst recession and bear market since 1929.”
For macroeconomist Zeberg, economic indicators show more serious signs than during the recessions in 2001 and 2008. Source: X/HenriZeberg.
The dollar collapses, but “thank God for Bitcoin”
Robert Kiyosaki, the author of the famous book ‘Rich Dad, Poor Dad’, has repeatedly warned about the collapse of the dollar, as has informed CryptoNews. Like him, several analysts from the cryptocurrency community share their views on the documentary recently released ‘God Bless Bitcoin’.
There, Tony Gallipi, co-founder of Bitpay says that The dollar drastically loses its purchasing power.
“The more they print, the more it will be diluted. And with bitcoin you just can’t do that. So people who understand the concept of money supply being the driver of inflation, then they’re going to understand why bitcoin is superior.”
Tony Gallipi, co-founder of Bitpay.
The reason more and more people are turning to BTC to protect their wealth is because “bitcoin is not centralized control of the economy,” rather it is separating money from state control as Kiyosaki points out.
For Kiyosaki, Bitcoin is money from people, not governments. Source: YouTube/God Bless Bitcoin.
What is happening is that the world is in the process of transformation because, on the one hand, there are a traditional monetary system that creates povertywhile on the other hand, there is a decentralized system that protects wealth. Then politicians make promises that they will fix the situation, but they cannot do so because the truth is that they must continue printing money and the more they do it, the more the concentration of wealth in a few grows and the more unfair and unequal the system becomes for the majority, say analysts at God Bless Bitcoin.
Michael Saylor, president of MicroStrategy, says the equation is simple: “If I price things in dollars and double the supply in dollars, prices will probably double over time.”
“This is how a single politician with the ability to print money can turn employees against employers, can turn buyers against sellers. The whole problem comes from inflation.”
Michael Saylor, President of MicroStrategy.
Everyone is grateful for the existence of Bitcoin Now that there are more and more young people living with their parents and for the first time we have a generation that is worse off than the previous one, as we hear in the documentary.
As already known reported in CriptoNoticiasSaylor adopted bitcoin as his main capital reserve and refuge against inflationIts accumulation of the digital currency began in 2020 and led to MicroStrategy currently being the publicly traded company with the largest BTC holdings.
Regarding the dollar, the businessman said:
“If we think about the last century, we see that the US dollar has lost 7% of its value every year over the last 100 years. We see that the inflation rate is at 2%, but the dollar has lost more than 90% of its purchasing power over the last century. This is a problem that comes with the easy printing of money.”
Michael Saylor, President of MicroStrategy
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