Mike Novogratz, the CEO of Galaxy Digital and a well-known crypto billionaire, is sounding the alarm about the US national debt. He’s worried that the government is spending way too much money, and it’s putting the country on a path to bankruptcy.
Spending Out of Control
Novogratz says that both the Trump and Biden administrations have been spending way more than they should. He says the US budget deficit is already at a dangerous level, and it’s only going to get worse.
“The government is spending way more than it takes in,” he said. “They’re spending like there’s no tomorrow, and they’re not even trying to raise taxes to cover it.”
The Only Solution: Cutting Entitlements
Novogratz believes the only way to fix the problem is to cut spending on programs like Medicare, Medicaid, and Social Security. He says these programs are too expensive and unsustainable.
“It’s going to be really hard to cut these programs,” he said. “But we have to do it. Otherwise, we’re going to bankrupt our kids and grandkids.”
Bitcoin as a Hedge
Novogratz thinks the rising debt and excessive spending will lead to inflation and a decline in the value of the US dollar. He believes Bitcoin will become a popular investment as people try to protect their money from this.
“Bitcoin is going to go up in value as people look for a safe haven from the dollar,” he said. “It’s going to be a good investment, but I wish we didn’t have to rely on it.”
A Bleak Outlook
Novogratz is pessimistic about the US government’s ability to address the debt crisis. He says both Democrats and Republicans are too afraid to make the tough decisions needed to fix the problem.
“We’re in a really bad situation,” he said. “I don’t see any way out of it.”
