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21 sats \ 1 reply \ @rikbona 17 Dec 2024
he is not wrong, but I think the US debt situation can't be fixed just like that. It's out of control and it requires a huge change in the country 's political approach to the economic things I think
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20 sats \ 0 replies \ @freetx 17 Dec 2024
The linked article may've not done a good job of explaining it....but literally the only way to fix insolvency is to increase Assets on the balance sheet and decrease Liabilities.
The problem with US balance sheet currently is that it is just mainly Liabilities, and the only Assets are land, real estate, various military goods, and gold (which sadly can only be valued by law at $42.2222/oz).
You may be tempted to think, but "tax receipts" are an Asset, but they are not....since that is just Federal Reserve Notes, which itself is just another debt.
So in addition to DOGE (the Elon/Vivek) initiative to reduce Liabilities, we need a way to increase Assets. Bitcoin is that way....
The US getting a sizable position and then pushing to monetize the network (encourage corporations and other countries to also join them), it could create a 50-100T positive balance sheet Asset entry.
That new 100T item on the balance sheet becomes the method to collateralize the existing debt and issue new debt/currency against.
The bitcoin will never be sold, but simple held in perpetuity as an accounting entry. As more debt and more currency are issued, the price of BTC will continue to go up. This means that it acts as a self-balance entry....the BTC will grow to 125T....150T....200T...etc. This keeps the US solvent and provides a "way out" to the current debt-trap.
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