Bitcoin advocate and Internet pirate Kim Dotcom recently tweeted requesting everyone to invest in bitcoin and gold. He reasoned that the US government is taking an additional debt of $1 trillion every year every year. And this debt will never be paid resulting in a global economic collapse.
1 TRILLION DOLLARS in additional US Govt debt PER YEAR!
US spending is funded by lenders who will never get paid. US Empire will collapse followed by a world wide economic collapse. https://t.co/kdtB0GnewP
Shift your USD into Gold & Bitcoin asap before USD becomes toilet paper. https://t.co/a5UIuhJvUT
— Kim Dotcom (@KimDotcom) August 9, 2018
He further added that Donald Trump became the president of a country which was hugely under debt and even the leading economists agree on the non-sustainability of the US government debt.
A rise in Federal Deficit
A recent report from the Congressional Budget Report mentioned that the federal deficit rose up by 20 per cent in the past 10 months. This is the reason that Dotcom’s warnings are controversial but not ignored. The spending revenue has been surpassed by $682 billion that is $116 billion more than the previous fiscal year’s same period. This has happened because of the Congressional agreement to increase the spending and President Donald Trump’s decision of reducing the taxes in a complement to his promise of stronger economic growth, leading to a reduction in the deficit.
To cut the deficit, the lead economists say that the rate has to be more than the second quarter’s growth of 4.1 per cent. The deficit is expected to be $793 billion by the end of 2018 and consequently, the deficit will reach $1 trillion by the year 2019. Servicing the debt will remove the expenditures on defence and social security in the coming thirty years.
Twitter support to Kim Dotcom
Kim again tweeted about his opinion of the fall of US economic and US dollar. And several twitter users came in support of his opinion. He urged his followers to invest in crypto and gold rather than just relying on fiat currencies.
Trust me. Buy crypto and gold. Your USD will become worthless. With US economic collapse all old money currencies will crash.
Times will get tough. But you’ll be fine if you hedge some of your assets in preparation for the crash.
The big crash is coming 100%.
— Kim Dotcom (@KimDotcom) August 12, 2018
The Twitter users have expressed their opinions by replying to the Dotcom tweet. Some tweets read that the value of a dollar is already zero and the rest claimed that the only solution is to eliminate the US Central Bank.