No. of Recommendations: 22
The US has huge and growing deficits, 30T in debt and 150T in unfunded liabilities. Much of the world is turning their backs on the USD because of our politics and fiscal irresponsibility.
BTC has no deficit, no debt, no unfunded liabilities or political affiliations. As hard as governments try they just can't stop it. I give BTC a 50/50 chance of replacing the USD as the world's reserve currency in the next ten years. (That's also when Social Security goes broke.)
Social Security can't "go broke." The US Government can create US dollars with a keystroke. You can't pay your taxes with anything other than US dollars in the United States - and the payment of your taxes is enforced with a big stick. The US Government should practically always run deficits to accommodate the private sector's desire to not spend everything they make (to save some). Deficits that are too large will cause undesirably high levels of inflation, as we have seen recently, but the US should not intentionally try to run surpluses or a balanced budget (unless they they are trying for a very short time to intentionally slow the economy). Running a smaller deficit or a balanced budget is a much more effective way to cool off the economy / slow inflation than changing the price of overnight money at the Fed. Fiscal policy, not monetary policy, is the most important factor in the US economy.
It is a mistake to apply the analogy of a household budget/finances to a sovereign nation with a fiat currency that is not convertible into anything, issues debt securities solely in its own currency, and has free floating exchange rates. The US Government cannot "run out of money."
