In a recent interview with Kitco News, Max Borders, the author of The Decentralist, revealed that the US economy is on the brink of collapse. He also revealed that Bitcoin and Gold are going to be key instruments to stave off the potential ramifications of future economic calamities.
Borders Explains The Issues With US Economy
Borders believes that the US may face worse economic hardships than the great depression.
Max explained that the biggest challenge to the US economy is that its debt is 130% of the GDP. On a worldwide scale, Borders reveals that there is over $300 Trillion in debts and leverages, while only $100 Trillion in production.
Borders also highlight that the Federal Reserve is being painted in a tight corner. Citing the example of the Coronavirus pandemic, Borders reveals that the Fed can print money to provide relief, only to then raise interest rates to curb the resulting inflation. He also highlights the unintended consequences of trying to intervene in the macro-financial systems.
Another factor at play is the clash between the political class and the central bank. According to Borders, while the monetary spending to ease the conditions during the pandemic was politically popular, it was not fiscally responsible.
