Samson Mow, a vocal Bitcoin supporter and CEO at Jan3 Bitcoin-focused company, has taken to Twitter/X to make a comment on the recent big interview of Fed chairman Jerome Powell on the 60 Minutes show, where, among other things, he discussed the U.S. national debt’s fast growth and the likely consequences of it.
“US on unsustainable fiscal path”
In the interview extract published by Mow, Powell openly stated that the federal government is now on “an unsustainable fiscal path.” He clarified this by saying that the national debt is growing much faster than the U.S. economy.
Powell admitted to being worried about this in the long term since the U.S. is now “borrowing from future generations.” The Fed chairman told the host that the U.S. must turn to placing the priority back on fiscal sustainability, and “sooner is better than later.”
Inflation has been the highest ever over the past 40 years, and in an attempt to tame it, Powell and the Fed raised interest rates 11 times. Now, as official economists and the Fed chairman say that the storm has calmed down and a recession has been avoided, Powell said that the Fed is going to plan reducing interest rates carefully.
The U.S. debt has been rising at a rapid pace from last year, when the government removed the ceiling for it, which back then was slightly above $31 trillion. As of now, the national debt of the USA constitutes $34 trillion.
Bitcoin is “only way out of a Debt Spiral”
Samson Mow commented on that statement by Powell. The Bitcoin maximalist said that, to him, Bitcoin seems like the only way for the economy to get out of “a Debt Spiral,” since Bitcoin is “harder money” than the USD.
However, he believes that a nation-state would have to act quickly to do that. “Laggards won’t be able to escape the spiral. GDP cannot keep up with spending and debt service,” he added.
The only way out of a Debt Spiral is to move to a harder money, which is #Bitcoin. This only works for the nation-states that act quickly – laggards won’t be able to escape the spiral. GDP cannot keep up with spending and debt service. The game is up. pic.twitter.com/IAJegz0y8U
— Samson Mow (@Excellion) February 6, 2024
Unlike the USD, Bitcoin cannot be minted outside of the 21 million supply programmed by Satoshi Nakamoto when he created BTC in 2009. One country has already adopted Bitcoin as a national currency with the help of Samson Mow – El Salvador.
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