The head of the United States Federal Reserve acknowledged that current economic policy is "not sustainable" – but it is not her job to correct it.
Speaking during testimony before the Joint Economic Committee of Congress on November 13, Jerome Powell noted that at present, US national debt is growing faster than nominal GDP.
Powell: Solving the "Not to the Fed" Debt Spiral
"After all, this is not a sustainable place in the long run," I said. Powell went on:
"How to fix this – it's easy to say this ̵
As reported by Cointelegraph, Now the American Debt has exceeded $ 23 trillion – about $ 70,000 per capita or more than $ 1 million for every bitcoin that will ever exist.
On the night of November 14 alone, federal allocated funds to banks worth BTC 12.7 million as its balance sheet expands to $ 4 trillion.
For Powell, however, dealing with the debt crisis means simply accumulating debt that has beaten growth, and even if you don't, it will not be chaos.  "I will be dismissed by not pointing out that the consequences of not turning to this is simply that … our children and grandmothers will spend their tax dollars on debt service, not on things that they really do. they need, "he continued.
Trump wants negative interest rates
The comments came after US President Donald Trump renewed calls for negative interest rates – effectively accruing savers to keep the fiat currency – and criticized the Federal Reserve for not introducing them. They are competing with nations that are openly cutting interest rates, so now many are actually getting paid when they pay off their loan … who ever heard of such a thing? Give me some of that, give me some of that money, "he said in a speech to the New York Economic Club.
Debt-driven economic policy and its consequences were the main motivation behind Bitcoin (BTC). which emerged after the 2008 economic crisis
As deflated hard money is impossible to manipulate, Bitcoin is increasingly being compared to gold as a hedge against the constant erosion of the value of fiat currencies.