How Washington’s Reaction to Trump’s Budget Justifies the Rise of Bitcoin, by Tho Bishop

In a world in which many governments, particularly the US government, will somehow default, Bitcoin looks like a viable wealth preservation strategy. From Tho Bishop at mises.org:

Earlier this week the Trump administration announced their proposed budget for 2018. The plan bears some striking resemblance to Trump’s first budget attempt in three key ways: it contains some legitimate cuts to a number of government programs, it features increases to America’s irrational war budget, and all together it reflects a significant increase in government spending from current levels. It also has zero chance of passing in Washington, which may be the most significant aspect of the budget.

As soon as details emerged, it was already being torn apart by a web of pundits, think tanks, and politicians. Not because it doesn’t adequately address America’s growing debt bomb, but because it promoted an “extreme” view of austerity. In spite of its refusal to address the trillions in entitlement obligations for Social Security and Medicare, the budget’s modest reductions to Medicaid were deemed “radical.” New York City mayor Bill de Blasio warned that proposed cuts to additional social programs will literally kill children. Meanwhile, the dependably absurd Jennifer Rubin was up in arms because Trump wasn’t spending enough on war.

As such, Republicans in both the House and Senate have made it clear that they aren’t interested in Trump’s “New Foundation for American Greatness.”

In spite of the obvious failings within the Trump budget, it’s hard not to sympathize with his Director of Budget and Management, Mick Mulvaney. In defending the proposed cuts, he told Congress on Thursday:

This is a moral document and here’s the moral side: If I take money from you and have no intention of ever giving it back, that’s not debt — that is theft. If I take money from you and show you how I can pay it back to you — that is debt.

This makes sense in the real world, but not in a city that hasn’t had to worry about paying off its debt in quite some time. By controlling the world’s reserve currency and placing massive entitlement programs off the books, politicians have mastered the art of kicking the can down the road.

Of course, this can’t last forever.

To continue reading: How Washington’s Reaction to Trump’s Budget Justifies the Rise of Bitcoin

 

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