Is America's $40 Trillion Debt Load Bullish or Bearish For Bitcoin? The Answer Might Surprise You. - The Globe and Mail
Is America's $40 Trillion Debt Load Bullish or Bearish For Bitcoin? The Answer Might Surprise You. - The Globe and Mail
Source: The Globe and Mail
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DW NOTE
The US federal debt is $36.2 trillion, not $40 trillion. If a publication cannot get the headline number right, the analysis that follows is suspect. Debt matters for bitcoin only insofar as it forces fiscal dominance — the point at which the Treasury can no longer roll maturities without the Fed monetising them. The 10-year yield is at 5.00% and the Fed just hiked into an energy shock. That's the opposite of fiscal dominance. When the Fed capitulates and cuts while deficits stay structural, then the debt becomes bullish for bitcoin. Until then, it's just a large number.