Notorious Internet pirate and bitcoin advocate Kim Dotcom is encouraging people to invest in gold and bitcoin due to the fact that the U.S. government is increasing $1 trillion to its debt every year, which will never be paid. The debt will ruin the U.S. and lead to a global economic crash.
Dotcom also posted on Twitter that U.S. President Donald Trump started his term with an empire on life support and that leading economist’s support the U.S. debt is not viable.
Even though Dotcom is scandalous, his warnings are however not speculative because federal deficit increased 20 percent in the past 10 months, according to a recent report from the Congressional Budget Office. From October 1st to July, expenditure exceeded revenue by $682 billion, which is $116 billion more than the same period of the previous fiscal year.
The increasing deficit has been motivated by President Trump’s tax reductions and a Congressional agreement to increase spending. Trump has stated that tax reductions will result in greater economic development, delivery increased tax revenue and cutting down on the deficit.
Even though the U.S. economy increased by 4.1 percent during the second quarter, economists have stated that additional growth is required to reduce the deficit.
It is expected that the deficit will rise to $793 billion by the end of the year and reach $1 trillion in 2019. Interest payments to service the debt are expected to become the fastest growing yearly spending. In 30 years, servicing the debt will exceed expenditures on defense and Social Security.