Galaxy Digital CEO Mike Novogratz is warning that US government spending is at an unsustainable level that threatens to bankrupt the country.
In a new interview on Bankless, the billionaire says that under former President Donald Trump and current President Joe Biden, government spending has soared to unprecedented levels.
Novogratz says the only way to rebalance the budget is to cut entitlements – something neither party is likely to do.
“What do you think the federal budget is this year as a percentage of GDP (gross domestic product)? It’s 26%. It’s supposed to be 20%. So 6%, it’s literally almost $1.5 trillion to $2 trillion more than they’re supposed to be able to spend and we’re not taxing enough. We’re taxing 20%. That leads to a 6% budget deficit. Who’s going to pay for that? Your grandkids or your kids…
And so the only way to stop that is to cut entitlements. What are entitlements? Medicare, Medicaid and Social Security. No politician wants to tell the old people, you don’t get the money you paid in for, you don’t get your hip replacement. We have the most inefficient medical system in the world. And those three things eat up almost all this money. And so if you don’t go for the entitlements, which I don’t think anyone will…you’ll talk about balancing, but you want even get close.”
Novogratz believes that the dire consequences of rising debt and excessive spending are going to send the price of Bitcoin surging as investors flock to BTC to hedge against dollar debasement.
“So why I’m so optimistic Bitcoin is really unfortunate. I’d rather our government deal with the crappy finances so we don’t bankrupt our grandkids, because we will. We are bankrupting this country. Mark my freaking words. We don’t have the political will to do anything about it. The Democrats don’t. The Republicans don’t.”
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