The Wolf Of All Streets "America" Will Support Bitcoin, Fiat Is Hopeless | Macro Monday
US Budget Bill: Pro-Growth Certainty
- The recent US budget bill is mostly extensions of existing tax cuts with modest pro-growth effects.
- The main benefit is legislative certainty, allowing businesses to plan spending confidently.
Structural Deficits Are Inevitable
- CBO deficit and debt forecasts are overly optimistic as they exclude recessions and use low interest rate assumptions.
- Structural fiscal deficits are inevitable unless major political reform occurs.
Why The US Government Is Betting Big on Bitcoin Over Fiat
The podcast discusses the unsustainable nature of US fiscal policy, highlighting how government spending is driven by the imperative to get elected rather than balanced budgeting. James Lavish points out that politicians prioritize spending on constituents and special interest groups to secure reelection, making structural deficits inevitable. Mike McGlone emphasizes the stock market's role as a crucial factor in sustaining this system, noting that maintaining high asset prices supports the ongoing financialized economy.
Importantly, Bitcoin is identified as a unique asset with a finite supply, recognized officially as a strategic treasury asset by the US government. Unlike fiat and other cryptocurrencies with unlimited competitors, Bitcoin’s limited supply makes it a key candidate to protect value amid monetary inflation and fiscal deficits.
Together, the speakers suggest that while fiat currency and traditional markets face structural challenges, Bitcoin stands out as a potential safeguard and investment during an era of growing debt and political complexity.