Renowned economist Daniel Lacalle expresses concerns regarding the future trajectory of the US dollar, attributing it not to cryptocurrencies like Bitcoin, but rather to fiscal policies. Lacalle highlights the alarming surge in national debt, now exceeding $34 trillion and growing by $1 trillion every hundred days.
He contends that this trend is unsustainable, especially during a period marked by apparent recovery, characterized by robust employment growth and rising earnings. Lacalle emphasizes the unsustainable nature of debt accumulation, particularly in relation to GDP growth, which, when adjusted for public debt accumulation, is the most unfavorable since 1930.
He underscores the paradox of seemingly strong economic performance amid an unprecedented rise in national debt. Lacalle challenges the notion of recovery, citing the diminishing purchasing power of salaries and the escalating financial burden on American families, worsened by negative real wage growth.