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US debt default approaching – is Bitcoin a last resort?

US debt default approaching – is Bitcoin a last resort?

The US debt ceiling has to be raised very soon. In the words of Treasury secretary Janet Yellen, the consequences for Congress not voting for this can be “catastrophic”. The US could join the likes of other countries who have defaulted on their debt, such as Greece, Argentina and Zimbabwe. 

According to an article on CNN Business, the US will run out of money to be able to pay its debts by 18 October unless Congress votes to raise the debt ceiling.  

In a letter to Congress, Yellen wrote: 

"It is uncertain whether we could continue to meet all the nation's commitments after that date," 

Yellen also cautioned that the 18 October date was only an estimate, and that the government’s cash flow of around $50 billion per day could shift up or down, meaning that it could run out of cash even earlier. 

The fact that the Republicans recently blocked a bill to suspend the debt limit makes things even more perilous. The government itself is running out of cash with which to operate on a day-to-day basis and so would be faced with shutting down. 

All of this has been caused by gross mismanagement of the economy by the Federal Reserve. Just tapping zeros onto a keyboard in order to bring ‘money’ into existence is a ploy that is now coming home to roost. 

The Federal Reserve is a private company with banks such as Rothschilds, Warburg, Goldman Sachs, and JP Morgan, among those that wield control. Why the machinations of this organisation are not held to account is a topic beyond this article, but needs to be borne in mind. 

Two recent resignations of the Federal Reserve Bank of Dallas President, Rob Kaplan, and the Boston Branch President Eric Rosengren, for “questionable stock-trading practices” only serve to underline what we are dealing with here. 

In spite of the huge quantities of mud that are slung at Bitcoin and cryptocurrencies by the likes of Yellen, Powell, Lagarde and co, the fact remains that Bitcoin is mathematical. It provides certainty and ensures that no third party is able to manipulate supply. 

The Blockchain is a ledger that records transactions with total transparency and with full immutability. Stack that up against the deeply unfair and corrupt monetary system that is in place and then try to understand how people feel when SEC Chairman Gary Gensler tells university kids to save fiat for their retirement. 

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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