Billionaires choose Bitcoin and gold as US debt grows, tech has a bad week
Last Updated on 21 April 2024 by CryptoTips.eu
The International Monetary Fund (IMF) this week issued a stark warning to the United States, still the world’s largest economy. Reduce your debt and get your expenses in order. It is however quite unlikely that something like this will happen anytime soon as Americans are in an election year.
Both Biden and Trump promise to either increase spending or cut taxes. Billionaires are therefore increasingly investing in Bitcoin and gold to spread their risk.
The dollar is doing well at the moment, but the Federal Reserve is expected to turn the printer on again soon because of that ballooning debt. They’ll probably do so as from the moment inflation approaches 2% again.
IMF sounds alarm on US national debt: "It raises short-term risks to the disinflation process, as well as longer-term fiscal and financial stability risks for the global economy," IMF economist Gourinchas said. "Something will have to give."https://t.co/2Li54bAj9m
— a proper gander ͡° ͡° (we deploribus, unum) (@thxUSA) April 20, 2024
I'M SOMETHING
IMF
The IMF knows what it is talking about, of course, and their advice is echoed by Lawrence H. White, an economics professor at George Mason University, who admitted to Reuters that:
“There’s interest in both gold and bitcoin because of that, because inflation’s been unsteady in the last couple of years.”
“More concerning is that the rising debt and deficit is in peace time with an economy that’s running at full employment… that’s normally when you should be running surpluses and we’re not even close. So, in the next recession we’re going to have an even bigger jump up in debt.”
In any case, billionaires seem willing to increasingly invest in gold and Bitcoin because of these conditions. Both investment options have had a very good 2024 so far (gold is up 16% in 2024 and Bitcoin rose 51% in the past four months), while things suddenly look very different for the American stock markets after this week.
Tech-heavy NASDAQ plummets 5.5% this week.
— GoldSilver HQ (@GoldSilverHQ) April 20, 2024
Is the market finally starting to sniff out the Fed's smoke and mirrors?
No rate cuts = Bad for stocks. pic.twitter.com/zNkvbYiToy
The Nasdaq, the American stock exchange where most technology shares are listed, fell 5.5% in the past five working days. Nvidia, the absolute winner of 2024 on the stock markets so far, lost 10% and seems ready for a correction.
