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3 Misconceptions About US Debt
- The article discusses three misconceptions about US federal debt and deficits, dispelling common beliefs about how the debt is owed.
- It explains the annual deficits, total outstanding debt, and the implications of ongoing deficits from an investment perspective.
- The article addresses the misconception that the debt is owed to ourselves, highlighting the various entities, domestic and foreign, to whom the government owes money.
- It delves into the possibility of selective defaulting on entities like foreigners and the Fed, exploring the potential consequences.
- The article refutes the idea that people have been warning about the debt for decades and explains how the current economic trends make the debt and deficits more impactful.
- A detailed analysis shows that the dollar is not expected to collapse imminently due to the substantial demand for it domestically and globally, providing context on potential currency outcomes.
- The author underscores the long-term consequences of the US debt and deficit situation, emphasizing the need for investors and economists to consider these factors in their decision-making.
- The article concludes with insights on the potential growth of bitcoin in the current economic landscape and its value compared to other asset classes.
- It highlights the resilience of bitcoin and its potential for further growth, considering its market value relative to the overall asset class valuation.
- Lastly, the author discusses the importance of owning scarce assets like bitcoin amidst the continuous growth of total credit in the US and global financial systems.
- Overall, the article provides a comprehensive analysis of the misconceptions surrounding US debt and deficits, offering insights into the economic implications and future scenarios.
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