Digital Currency and the Massive U.S. Debt

By CoachCCAlbert | Musings of the Mind | 28 Jan 2020

With the U.S. Debt over 22+ TRILLION dollars, there appears to be no doable solution in lowering it nor is there any real attempt other than chatter to lower it.  Why?  After all, this discussion has been going on for most of our lifetimes dating back several presidencies.  Ross Perot even garnished 10% of the popular vote and allowed President Clinton to win the the Presidency in 1992.  He literally had charts and discussions on the doom we faced as a Nation.  So here we are....nothing has changed except the deficit is ballooning.  But is it really a menace...yet? Here are some things to consider:

1.  The Federal Government holds (owns) federal land in the United States valued at over 150 Trillion dollars.  Imagine being able to walk into a bank and get a loan for $22,000 and you have $150,000 in collateral.  Kinda puts it in perspective doesn't it?

2.  The land the government does not own produces revenue streams called property taxes.  Do you ever wonder why the government encourages development and capital investment on land?  You guessed it.  The value goes up and the taxes likewise.  To get a raise, all they have to do is "reassess" your property and raise the rate.

3.  They own the printing press and control the money supply.  Creating liquidity is a talent the federal government has become an expert at since the 2008 crisis.  There are so many creative ways to do this and 2008 finally gave the government "permission" to manipulate this supply even further.  Without a tie to any physical asset such as gold or silver, the quantity of money created can be limitless.  

4.  Digital Currency - a brand new world that has not even seen the many ideas and tools that will spring forth from this creation.  Before, commodities such as gold, silver, and other things were considered a store of value.  Digital Currency has many features of both worlds (Fiat money and Commodities).  Digital Currency can be created out of thin air, attached to some purpose, but made with a finite amount.  Based on the particular purpose of each currency, adjustments can be made to help attain the desired results such as currencies pegged to the value of a particular fiat currency.  So now the possibility arises of a government being able to print an infinite amount of fiat currency and buy a digital currency that has a finite amount thus creating value in the digital currency via supply and demand.  

These are just a few examples of how in this brand new world, deficits are not as imposing as they once were because we have many more avenues to ward of this effect.....follow this blog as I hope to expound on some of these ways.  Comments are appreciated.


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Musings of the Mind
Musings of the Mind

For us introverts, we probably spend most of our time inside of our minds concocting ideas, philosophies, and even very strong opinions which we would surely be willing to share if we just had the energy to bring them outside into where everyone can see them....this blog is simply for the purpose of ideas and thoughts that maybe expounded upon after you read them. Some will be deep and others superficial, but either way, they are now out there for public consumption.

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