Silicon Valley investor and economic commentator Balaji Srinivasan said Tuesday the U.S. is heading towards a national bankruptcy, with no possible solution to its debt crisis.
What Happened: In an X post, Srinivasan stated that the U.S. is “broke”, with the real debt exceeding $175 trillion.
“The US is broke. The real debt is $175T+. And Elon Musk is 100% correct on the numbers,” he said. potentially referring to an earlier X post by the Tesla and SpaceX CEO.
Srinivasan cited the 2024 financial report, which projected a $175.3 trillion present value shortfall in social programs, implying that the fiscal crisis was due to unfunded liabilities rather than just annual deficits.
“There is no fix. It’s a write-off. A national bankruptcy,” the former Coinbase executive argued. He added that the government would inflate away the debt by increasing the money supply, i.e, through excessive money printing.
The U.S. economy is facing a potential crisis as the national debt, currently exceeding $36.2 trillion, continues to rise, sparking concerns among economists and analysts.
Why It Matters: This grim prediction comes in the wake of other influencers also expressing concerns over the U.S. economy’s health. Anthony Pompliano, a cryptocurrency market commentator, projected Bitcoin (CRYPTO: BTC) to soar to a “gazillion” due to massive money printing in a heated economy.
Arthur Hayes, Chief Investment Officer of Maelstrom and co-founder of BitMEX, echoed similar sentiments. He maintained his projection for Bitcoin to reach $250,000 by year-end and $1 million by 2028, driven by trillions worth of fiat liquidity injection.
Bitcoin supporters have consistently backed the idea that high money printing could lead to inflation, devaluing the dollar, and sending Bitcoin, which they deem as inflation hedge, soaring.
Price Action: At the time of writing, Bitcoin was exchanging hands at $106,787.27, down 0.04% in the last 24 hours, according to data from Benzinga Pro.
Photo Courtesy: patpitchaya on Shutterstock.com
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