World debt hits new record: good for BTC

[Hydrogen]

$164 trillion in deficit and debt is much more dangerous to national security and the welfare of the public than terrorists "laundering money" via bitcoin. Unfortunately deficit and debt are unlikely to be acknowledged as a legitimate issue as it empowers wealth redistribution and makes it easier for the rich to become richer at the expense of everyone else.

The agenda based media has been discussing a "bitcoin bubble" when in reality they would discuss a "global debt bubble" if they did their jobs and reported on real issues which affect you and I.

If economists like Robert Shiller and Paul Krugman did their jobs they would be warning the public about the negative long term consequences $164 trillion in global debt can have on everyone. Unfortunately, they don't seem to do anything unless they get paid for it. And there appear to be many who will pay for them to *invent* negative stories about bitcoin, rather than report on legitimate issues.

[keycellko]

I dont see any correlation beteeen the world debt to bitcoin. Every country looks at debt in a way to sustain their countries projects and also as form of alliance between countries. $164 is an awful lot of debt.

Bitcoin on the other hand boasts for its 21m supply. The closer we get to that last coin mined, the higher the price of bitcoin becomes.

[bohr]

https://www.bloomberg.com/news/articles/2018-04-18/world-debt-hits-record-164-trillion-as-crisis-hangover-lingers

$164 trillion! That is an awfully big pile of money, but governments think it's not big enough. They keep on borrowing more every year. If there's no crash, it will be a miracle.

Pray God.
Or buy BTC!

All the world economy is based on debt so I'm not really surprised to see that number, the governments of the world think that they can keep borrowing money without any kind of backlash, but that is simply impossible in fact if you remember bitcoin was created just a few weeks after an economic crash and when a economic crash happens again bitcoin popularity will go up exponentially.

[olia10]

An alternative market appears, at least its core. I think that when the next reserve currency system is developed, it will be digital now almost all the major national banks are implementing blocking technologies and various crypto-currencies in their business models.

[vfrias]

Yes, I do think it is good for bitcoin (and metals like gold and silver).

Any libertarian and/or enthusiast of austrian economics should agree with that. Government keep printing money to sustain such artificial levels, destroying the purchasing power of Dollar and other currencies (mainly EUR)  and when you look at what really matters, like producitivy, we are nothing seeing any progress within years.

Bitcoin fits really well against such manipulation and as hedge of government-shit.

[amishmanish]

How is this fair?? Why do we keep hearing arguments AGAINST a capped reserve currency with comparisons made to the gold standard and effectively no noise against this tiger of unlimited debt that the governments keep riding at the expense of middle classes. Any economists listening to this?

Because you  don't have instruments to controll the monetary system. Deflation can be way more harmfull then the inflation. It will completely kill the macro economy of the country. Economists have to struggle it.

Controlling the monetary system is very much a Bretton-woods invention. World economy had been running through the years when you did not have these 'monetary controls', albeit with crashes and depressions. Crashes still happen today.  The problem is, economists have convinced themselves and the world that this model works the best. Even when there is an alternative emerging for the taking, they are more interested in disparaging it than actually informing the media and public about both sides. It's a battle of perception than a case of one being superior over other.

A capped reserve gives much less wiggle room to central banks(like the Federal Reserve) forcing them, the Politicians and the Investment bankers on their management boards to actually do their job. While with an unlimited reserve, you can always "Quantitatively Ease" your way out of any fuck-up.

$164 trillion in deficit and debt is much more dangerous to national security and the welfare of the public than terrorists "laundering money" via bitcoin. Unfortunately deficit and debt are unlikely to be acknowledged as a legitimate issue as it empowers wealth redistribution and makes it easier for the rich to become richer at the expense of everyone else.

The agenda based media has been discussing a "bitcoin bubble" when in reality they would discuss a "global debt bubble" if they did their jobs and reported on real issues which affect you and I.

If economists like Robert Shiller and Paul Krugman did their jobs they would be warning the public about the negative long term consequences $164 trillion in global debt can have on everyone. Unfortunately, they don't seem to do anything unless they get paid for it. And there appear to be many who will pay for them to *invent* negative stories about bitcoin, rather than report on legitimate issues.

Exactly! This is what we are talking about. Why can't there be a real debate on these topics:

• How much "wiggle room" for monetary control do the central banks, governments and businesses need?
• Why should it at be at expense of middle classes and their lives' savings??
• Why should the rich keep getting richer while the public expenditures on welfare measures for the poorest are forced to cut beyond recognition in the name of austerity measures??

When you create a circle-jerk where businesses, politicians and central banks are only interested in keeping each other protected, you will never have enough 'budget' to help the poor. Demagoguery based democracies like India and USA, with their humongous disparity are a prime example of this phenomena.

[Kakmakr]

Two important parts of the article:

High levels of sovereign debt could make it difficult for governments to refinance when their debt reaches maturity, especially if financing conditions tighten, the IMF said. Large debts also impede the ability of nations to increase spending if their economies fall into recession, and may cause a drag on growth

If governments cannot refinance their debts, the burden eventually falls on public spending. On education, healthcare and infrastructure. This upward spiral of debt and downward spiral of "funds available for the tax-payer" are directly related.

The combination of last year’s tax cuts and increased government spending in a recent U.S. budget deal will benefit all income groups, the IMF said. However, those in the top quintile of incomes would benefit the most, followed by those in the bottom quintile, the fund said. As a result, the measures may contribute to the further “hollowing out” of middle-class incomes, it said.

Bitcoin supporters have been saying this for long enough. Creative firefighting measures made possible by an unlimited, inflationary currency will  ultimately, always take their toll on the middle class.
How is this fair?? Why do we keep hearing arguments AGAINST a capped reserve currency with comparisons made to the gold standard and effectively no noise against this tiger of unlimited debt that the governments keep riding at the expense of middle classes. Any economists listening to this?

Have you read this Book, "Why we want you to be rich" - by Donald Trump and Robert Kiyosaki

The book warns the reader that the American middle class strata is shrinking due to multiple factors including oncoming retirement of the baby boomers, rising costs of light crude oil, decreasing employer pay to employees, increasing national debt of the United States, and a declining power of the United States dollar. Source : https://en.wikipedia.org/wiki/Why_We_Want_You_to_Be_Rich

Rich people know that the middle class must survive for them to survive. <The logic behind that is, that if the middle class was wiped out, then the full tax burden will fall on the rich people.>

Governments all around the world have tapped out most of the rich people in their countries already and the lion share of taxes are being dumped onto the middle class now. This is why more and more people are moving from being middle class to being poor.

[BillCoin]

It's still confusing how this will affect bitcoin expect if you means, that the government will probably 'borrow' peoples' money unknowingly in the bank to clear up their debts. Isn't that what they often do? It's not about borrowing the money that's the main concern, but paying people their required interest when done. I personally had nor needed a motivator to tell me to invest in bitcoin.

Huge debt means less trust in the traditional currencies and economy which means higher chances of getting your currency dropped.
People who knows about this risk may decide to put a part of their money in exotic currencies such as bitcoin, which may resulted in an increase in bitcoin's price.
Assets are going to be those who profits in case of currency explode as they are not directly connected to traditional currencies beside trading against them.

[RamonBTC]

That’s why the theory of www||| is in discussion nowadays it is meanly because the financial crisis is on our door knocking. USA is in full movement to hide this buy bombing Syria even with the threat of Russia.

With the big dept of America to China the reality is Uncle Sam is dying and in verge of passing the slogan “The great country” goes to an Asian country member.

I do believe that in the fall of fiat currency will emerge the bitcoin currency as at the center.

[BillCoin]

If there's no crash, it will be a miracle.

Let's think different a little.
If it will be a crash, I think that Bitcoin pricing will also drop a lot.
Basically the price of Bitcoin is how much people want to pay for it.
If there's a crash, people would sell Bitcoin and stocks to cover other needs.
We've seen already Bitcoin falling just before the stocks have fallen too. Many use Bitcoin in a similar way to stocks.

Maybe I'm wrong. I hope so. But.. what if I'm right?
I think that's better for everybody, for now, to not pray for a new crisis.

It's really vary, because you are talking here about different aspects.
If the price of USD goes down, it is no longer an indicator to bitcoin's price, and we will need to indicate bitcoin's price with a more stable currency or even an asset such as gold.
I am pretty sure that the purchasing power of 1BTC will skyrocket(and will even more skyrocket if we compare it to the falling currency of USD).

[mu_enrico]

Meanwhile market cap for all crypto still 0.36 trillion, and bitcoin 0.14 trillion.. what a gap!
And mainstream media echoing about bubble in crypto

I think bubble is in fiat!  

[Findingnemo]

Meanwhile market cap for all crypto still 0.36 trillion, and bitcoin 0.14 trillion.. what a gap!
And mainstream media echoing about bubble in crypto

I think bubble is in fiat!  

The borrow from many sites will give an insecure feel for all investors and it cause a big disadvantage for crypto currency and cause huge loss and fall in the value of it.

[Beerwizzard]

Because you  don't have instruments to controll the monetary system. Deflation can be way more harmfull then the inflation. It will completely kill the macro economy of the country. Economists have to struggle it.

Controlling the monetary system is very much a Bretton-woods invention. World economy had been running through the years when you did not have these 'monetary controls', albeit with crashes and depressions. Crashes still happen today.  The problem is, economists have convinced themselves and the world that this model works the best. Even when there is an alternative emerging for the taking, they are more interested in disparaging it than actually informing the media and public about both sides. It's a battle of perception than a case of one being superior over other.

A capped reserve gives much less wiggle room to central banks(like the Federal Reserve) forcing them, the Politicians and the Investment bankers on their management boards to actually do their job. While with an unlimited reserve, you can always "Quantitatively Ease" your way out of any fuck-up.

Bretton-woods system ahould ba able to clear the mess after the hard times and make economies more connected with each other. At the 2nd half of the XX sentury economic science was way more developped then it was years ago, it became an established science rather then just an exchange. Economists started using different econometric tricks that did not exist before.
The real problem of US economy (as highly affects the global economy) is welfare. This is a huge beast and politicians still keep feeding it (and probably will continue doing it). Insane amounts of money are wasted for nothing. If anyone think that the current global economical system works bad then he can eliminate welfare before dealing with the other things.

[pawanjain]

https://www.bloomberg.com/news/articles/2018-04-18/world-debt-hits-record-164-trillion-as-crisis-hangover-lingers
$164 trillion! That is an awfully big pile of money, but governments think it's not big enough. They keep on borrowing more every year. If there's no crash, it will be a miracle.

Pray God.
Or buy BTC!

Wow  $164 Trillion is really a big number and i think things are going to worsen in coming years because the GDP is increasing at a rapid speed by almost 22.7% and we need to think on this issue of global economics. Even though Bitcoin and crypto market has nothing connected to it because it is decentralized and till now there is no governing body connected to it and In fact, i would see the cryptomarket growing side by side. But if there is a huge amount of participation in the crypto market and if the government plans to regulate and use the cryptomarket then the debt can decrease to a certain extent which is a good sign.

[Swenna]

The world debt is increasing every year but actually, that is not becaise of the continuous lending or borrowing of money. It is in fact, because most borrowers tends to fail to pay the interest of their borrowed money, thus, it is being accumulated into a great sum of, well, debt. It is true the paper money is already losing its value. Tje only reason that our economy can still stand is because of the inflation and when this is over, we are going to need to look for another means of currency. That is where the relationship between the world debt and cryptocurrency's kicks in.

For a better understanding about this, you can read this article, http://www.businessinsider.com/deutsche-bank-end-of-fiat-money-2017-11?r=UK&IR=T .

[zoomzoom]

I'm not entirely sure of the correlation.. although debt.. particularly nations debt is a subject that fascinated me but also confuses me. I don't think there will ever be some huge sway to crypto due to a mistrust in traditional finacial systems.

[4abrec]

https://www.bloomberg.com/news/articles/2018-04-18/world-debt-hits-record-164-trillion-as-crisis-hangover-lingers

$164 trillion! That is an awfully big pile of money, but governments think it's not big enough. They keep on borrowing more every year. If there's no crash, it will be a miracle.

Pray God.
Or buy BTC!

I think that this moment will soon come, if it is certainly not yet coming. Now the governor will start paying attention to crypto-currencies, and most likely will make decisions.

[glavos]

And in the end again the average person will be screwed and the banks will walk away with billions...
Watch the movies "Inside Job", its really good one.

[eternalgloom]

I'm not entirely sure of the correlation.. although debt.. particularly nations debt is a subject that fascinated me but also confuses me. I don't think there will ever be some huge sway to crypto due to a mistrust in traditional finacial systems.

There is already an impact do to mistrust in financial systems, just look at the trading volume increase that's happening in Venezuela right now.
that's fully due to mistrust in their local financial system, the same thing could easily happen in other countries.

Bitcoin could easily replace gold as a safe store of value in the future and I'm sure there are already many people who have switched over.

It's not called digital gold for nothing...

[amishmanish]

Because you  don't have instruments to controll the monetary system. Deflation can be way more harmfull then the inflation. It will completely kill the macro economy of the country. Economists have to struggle it.

Controlling the monetary system is very much a Bretton-woods invention. World economy had been running through the years when you did not have these 'monetary controls', albeit with crashes and depressions. Crashes still happen today.  The problem is, economists have convinced themselves and the world that this model works the best. Even when there is an alternative emerging for the taking, they are more interested in disparaging it than actually informing the media and public about both sides. It's a battle of perception than a case of one being superior over other.

A capped reserve gives much less wiggle room to central banks(like the Federal Reserve) forcing them, the Politicians and the Investment bankers on their management boards to actually do their job. While with an unlimited reserve, you can always "Quantitatively Ease" your way out of any fuck-up.

Bretton-woods system ahould ba able to clear the mess after the hard times and make economies more connected with each other. At the 2nd half of the XX sentury economic science was way more developped then it was years ago, it became an established science rather then just an exchange. Economists started using different econometric tricks that did not exist before.

First, Economies have so many variables ranging from the social, psychological and political that economics cannot really be considered "Science". It is still very much a "Social Science"; a Humanities topic, if you will.
You used the phrase 'econometric tricks'. The same thing as "Financial Engineering". Money is ultimately about power and control. The power to control taxation and interest for governance. What the economists have shrewdly achieved is to paint these "tools" of taxation and interest as some sort of holy grail for constant growth. When constant growth and consumerism shouldn't even be the sole target of societies.

The real problem of US economy (as highly affects the global economy) is welfare. This is a huge beast and politicians still keep feeding it (and probably will continue doing it). Insane amounts of money are wasted for nothing. If anyone think that the current global economical system works bad then he can eliminate welfare before dealing with the other things.

This seems to be coming from the laissez-faire, anti-welfare school. I don't think there is anything wrong with welfare as long as it is not used for political gains. The problem is that this "insane amount of money" has no basis and no accountability.
Imagine a country where all "welfare allocations" were transparent on the blockchain and every single Satoshi spent was accounted for. There won't be an unlimited amount to allocate because, well, you won't have an unlimited reserve currency to fall back on.

Right now, it's fair game for all sort of organisations that take their share of the pie from the debt financed US budget. The money goes in and nothing comes out. That debt-financed money ultimately reaches the top 1% of people via their companies. The burden of debt is borne by the middle classes in the form of higher taxes, higher inflation.
A transparent, decentralized currency is quite a solution for this whole problem. We never hear the media talk about that. The economists are free to wax eloquent about "fiscal policy", "monetary policy", quantitative easing" and what not. Fancy terms to make people realize that it's all too complicated and the trio of Govts, Banks and Businesses is doing a fine job.