Nearly $345 trillion Asset Manager Issues Alarm, Highlights Concern that National Debt Accumulates More Rapidly Than Economic Expansion
Hodl Daily Digest 📰
It's time for your daily dose of crypto news and insights from HodlX! Today we bring you an alarming call to action from Jim Millstein, co-chair of Guggenheim Securities. Millstein, who previously served as the Chief Restructuring Officer at the U.S. Treasury, is urging the government to tackle its financial predicament head-on, warning of a looming fiscal catastrophe.
Millstein spoke candidly with Bloomberg, expressing his concerns about the staggering deficit, which he estimates to be 7% of GDP this year. This deficit creates an unsustainable situation where debt outpaces growth, making the government more indebted over time. The solution, Millstein says, is “fiscal consolidation,” which involves aligning revenues with spending to avoid a dangerous financial spiral.
But Millstein’s warnings don't stop there. He believes that this fiscal imbalance is causing Treasury yields to rise, spiking "because of the imbalance in the federal government’s finances and the huge amount of deficits they have to finance." This high demand for financing is set to drive up interest costs on existing and future debt, making the ten-year Treasury yields the country's most significant financial challenge at the moment.
Millstein's comments echo the financial challenges faced in the '90s, as Treasury yields rose enough to motivate politicians to take action and reduce the deficit. It appears the U.S. may be heading down a similar path. Let's hope our leaders take heed and take the necessary steps to avert this fiscal disaster.
Spotlight 🔦
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- Coinbase faces a class-action lawsuit over stock drop tied to data and regulatory breaches.
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- The alarming call to action from Jim Millstein, former U.S. Treasury official, emphasizes the need for "fiscal consolidation" in the crypto, business, politics, and general-news sectors, citing unsustainable debt growth.
- In the Spotlight section, the author of "Rich Dad Poor Dad" warns about forthcoming hyperinflation that could result in major financial devastation for millions, highlighting the intersection between cryptocurrency and finance.
- The ongoing legal troubles of crypto exchange Coinbase have become a matter of concern in the cryptocurrency and business worlds, with a class-action lawsuit being filed over drops in stock prices due to data and regulatory breaches.
