Bitcoin and the equities market may have both mounted rapid comebacks from their March lows, but there remain economic storm clouds brewing on the horizon. As Jerome Powell, chairman of the Federal Reserve, explained in a recent speech, the ongoing recession caused by the COVID-19 outbreak is one “without modern precedent.”
The rate of COVID-19 infections is slowing in many places, yet many of the world’s largest economies remain in lockdown, with spending coming to a standstill as dozens of millions have become unemployed. Governments have been forced to act, injecting billions upon billions into their respective economies to ensure the stability of society.
The issue is, due to an absence in spending, tax collections have plummeted while government spending has increased, leaving sovereigns with rapidly increasing deficits. It’s a trend that many say proves the value of Bitcoin, gold, and other “hard” assets.
Bitcoin to Boom as “USA Goes Broke”: Robert Kiyosaki
It’s been hard to miss Robert “Rich Dad” Kiyosaki’s tweets over the past few months.
The prominent financial educator and entrepreneur, best known for his book “Rich Dad Poor Dad,” has issued tweet after tweet (in all caps) calling out Wall Street, the government, our central banks, and about any other financial and fiscal institution in authority.
Kiyosaki made this much clear in a tweet on May 19th, in which he remarked that due to the decrease in tax receipts and increased spending, the “USA [is] GOING BROKE.” The response, the financial educator said, is to “get gold, silver, Bitcoin” to “SAVE YOUR SELF”
NEW YORK CITY GOING BROKE. All cities count on INCOME TAX, SALES TAX & REAL ESTATE TAXES, especially COMMERCIAL RE. Add pension contributions for teachers firefighters & police. USA GOING…