The coming debt collapse
Natalie Smolenski - "We are witnessing the end of a multi generational debt supercycle."
In the video attached, Natalie Smolenski, Head of Business Development for Hyland Innovation and Executive Director of the Texas Bitcoin Foundation, shares her thoughts regarding the current debt crisis we face and the solution Bitcoin provides.
What is a debt supercycle?
A debt supercycle is a multi-generational cycle in which a civilization increases its public and private debt levels until they become unsustainable.
The collapse of some of the world’s largest cryptocurrency exchanges recently triggered systemic shocks, causing a cascade of bankruptcies and liquidations. Millions of investors have lost significant amounts, if not all, of their wealth. The criminality of what was underway is only now beginning to come to light.
The bad actors in a debt supercycle aren’t just the companies making wild promises or engaging in outright fraud. They take their cue from the sovereign, and in the case of the United States, the Federal Reserve has doubled its balance sheet since the start of the coronavirus from 4 to $8 trillion.
This is what both FTX and Terra Luna tried to do. Print their own private currencies to prop up their asset books and valuations, but they were not sovereign. They could not force anyone to use their tokens under the threat of sovereign violence.
At the culmination of a debt supercycle, confidence in the sovereign collapses. After all, debt is a game of trust.
The US National Debt is 31 trillion dollars and growing.
The US Debt to GDP stands at 125%. Our productive economy cannot produce enough value to pay off our debt. We have passed the point of no return.
The world’s most prominent investors in US treasury bonds, other sovereign countries, have been systematically selling their inventory and buying less. Confidence is plummeting.
Bitcoin was built for this type of environment.
Listen in…
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Thanks!
Ty