Controversial Internet pirate and bitcoin advocate Kim Dotcom is urging everyone to invest in gold and bitcoin because the U.S. government is adding $1 trillion to its debt every year, which will never be paid. The debt will destroy the U.S. and create a global economic collapse, Dotcom argued in a tweet.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
Dotcom also tweeted that U.S. President Donald Trump began his term with an empire on life support, and that leading economists agree the U.S. debt is not sustainable.Dotcom’s Warnings Not Unfounded
While Dotcom is controversial, his warnings are perhaps not unfounded, given the fact that the federal deficit rose 20% in the last 10 months, according to a recent report from the Congressional Budget Office, as reported by The Hill. From Oct. 1 to July, spending surpassed revenue by $682 billion, which is $116 billion more than the same period for the prior fiscal year.
The expanding deficit has been driven by Pres. Trump’s tax cuts and a Congressional agreement to increase spending. Trump has claimed the tax cuts will lead to stronger economic growth, delivering more tax revenue and reducing the deficit.
While the U.S. economy grew by 4.1% in the second quarter, economists have noted that more growth is needed to cut the deficit.Deficit To Rise Data Source: U.S. Government | Image Source: Wikimedia
The deficit is expected to hit $793 billion at the end of the year and approach $1 trillion in 2019. Interest payments to service the debt are forecast to become the fastest rising yearly expenditure. In 30 years, servicing the debt will outpace expenditures on defense and Social...