There has been a dramatic change in the state of the American economy.
U.S. Total Public Debt Outstanding increased by approximately $1 trillion between June 1 and July 6, 2023, a period of slightly over a month. Both crypto fans and financial professionals have taken notice of the market’s sudden surge.
First, let’s define Total Public Debt Outstanding and then discuss its significance. In layman’s terms, it is the sum total of what the United States government owes its many creditors. This consists of both publicly held debt, such as U.S. Treasury securities owned by private citizens, companies, and foreign governments, and privately held debt, such as government account series securities held by federal agencies. Interest rates, a country’s credit rating, and economic development are all impacted by its quantity of public debt.
U.S. Total Public Debt Outstanding was $31.47 Trillion as of June 1, 2023. According to the Bureau of the Fiscal Service of the United States Department of the Treasury, this number grew to $32.47 trillion as of July 6, 2023. Even though the United States Senate passed a bill with broad bipartisan support on June 1, 2023, increasing the debt limit to $31.4 trillion and preventing a default for the first time in history, the national debt has grown rapidly in recent years.
Previously, the Treasury Department had issued a dire warning that, if Congress did not act, the government would be unable to pay all of its debts by June 5. The Senate’s vote to increase the debt limit was widely hailed as a lifesaving measure that averted a financial meltdown. The ensuing rise in national debt has prompted questions and debates regarding the state of the country’s finances.
The cryptocurrency industry has taken note of the United States’ significant increase in debt. Galaxy Digital CEO Mike Novogratz had a concise response to the news: “That is absurd…spend your money on Bitcoin.” Novogratz, a prominent Bitcoin proponent, has speculated that the increasing U.S. debt may prompt investors to shift their focus to Bitcoin, a decentralized currency that is unaffected by monetary policy choices made by governments.
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