In an interview with Kitco news, the author of ‘The Decentralist’ Max Borders, recently admitted that the US economy is in danger of imploding.
Additionally, he disclosed that gold and Bitcoin would be crucial tools for fending off the probable effects of future economic catastrophes.
The financial guru has shared his profound insights on the US economy’s impending trouble areas and how these two assets can help to reduce inflation in the near future.
The Pain Areas Of The U.S Economy
The US may experience severe financial difficulties owing to:
- The fact that the US debt exceeds 130 percent of the GDP, according to Max, is the biggest issue with the US economic system. There are over $300 trillion in debts and leverages globally, but only $100 trillion in manufacturing.
- Borders draw attention to the fact that the Federal Reserve is painted in a besieged city. He illustrates this point by using the Coronavirus outbreak as an example. He claims that the Fed can print money to reduce supply, only to raise rates to curb the inevitable inflation. He also highlights the unforeseen consequences of trying to intervene in macro-financial initiatives.
- The clash between the political elite and the ongoing financial institution is another issue at hand. Although the financial spending to ease the situation during the pandemic was politically fashionable, according to Borders, it was not financially responsible.
Can Bitcoin and Gold Help?
The author suggests that Bitcoin and Gold could be the solution to the world’s financial problems. Max claims that people have lost their religious beliefs within the institutions. Bitcoin was introduced in 2009 to address the 2008 housing slump- and it could come to the rescue again.
Also, the federal government and rapacious businesses’ cooperation was exposed by the housing catastrophe. Bitcoin has the potential to disrupt existing institutions and offer a competitive option to established businesses. He also lambasted the whales for viewing cryptocurrency as a ‘risky investment’.
To address the challenging situations ahead he advised consumers to use Bitcoin properly, in order for it to be of great value store and an inflation hedge. Hence with widespread adoption, cryptocurrency volatility will decrease.