Controversial Internet pirate and bitcoin advocate Kim Dotcom is urging everyone to invest in gold and bitcoin because the U.S. government is adding $1 trillion to its debt every year, which will never be paid. The debt will destroy the U.S. and create a global economic collapse, Dotcom argued in a tweet.
Dotcom also tweeted that U.S. President Donald Trump began his term with an empire on life support, and that leading economists agree the U.S. debt is not sustainable.
While Dotcom is controversial, his warnings are perhaps not unfounded, given the fact that the federal deficit rose 20% in the last 10 months, according to a recent report from the Congressional Budget Office, as reported by The Hill. From Oct. 1 to July, spending surpassed revenue by $682 billion, which is $116 billion more than the same period for the prior fiscal year.
The expanding deficit has been driven by Pres. Trump’s tax cuts and a Congressional agreement to increase spending. Trump has claimed the tax cuts will lead to stronger economic growth, delivering more tax revenue and reducing the deficit.
While the U.S. economy grew by 4.1% in the second quarter, economists have noted that more growth is needed to cut the deficit.
The deficit is expected to hit $793 billion at the end of the year and approach $1 trillion in 2019. Interest payments to service the debt are forecast to become the fastest rising yearly expenditure. In 30 years, servicing the debt will outpace expenditures on defense and Social Security.
Responses to Dotcom’s post ran the gamut.
One tweeter said a military junta will emerge to protect people. Some agreed with Dotcom and said the U.S. dollar is already worthless, while another tweeter said the solution is to eliminate the country’s central bank.
Yet another tweeter responded that the debt will be restructured and that in the meantime, a restoration of the “manufacturing hole” caused by the North American Free Trade Agreement will restore U.S. manufacturing and lead to stronger economic growth.
Dotcom, meanwhile continues his battle with the U.S. government. In 2012, Dotcom was indicted by a U.S. grand jury over his file-sharing site, Megaupload.
The FBI shut down the site and ordered a raid on Dotcom’s home, accusing him of copyright infringement, money laundering and racketeering. Dotcom has been fighting extradition to the U.S. from New Zealand.
Featured image from Wikimedia
Last modified: August 12, 2018 18:53 UTC