The head of the US central bank has admitted that the current economic policy is "not sustainable" – but it is not the job to fix it.
Speaking during a statement to Congress & # 39; Joint Economic Committee November 13, Jerome Powell noted that US government debt is growing faster than nominal GDP for the time being.
Powell: Loose Debt Spiral "Not Up to the Fed"
"Ultimately, in the long run, it's not a sustainable place to be," he said. Powell continued:
"How do I fix it – it's easy to say ̵
As Cointelegraph reported, US debt has now topped $ 23 trillion – around $ 70,000 per capita, or more than $ 1 million for every Bitcoin that will ever exist.
For Powell, however, solving the debt crisis simply means doing growth to beat debt, and even failing to do so would not equal chaos.  "I would like to point out that the consequences of not taking it up are simply that … our children and grandchildren will spend tax money on debt rather than the things they really need," he continued.
Trump wants negative interest rates
The comments came when US President Donald Trump renewed calls for negative interest rates – effectively charged savers to save fiat currency – and criticized the Fed for not introducing them.
"Remember, we are competing with nations that openly cut interest rates, so now many are actually being paid when they pay off their loan … who have ever heard of such a thing? Give me some of it, give me some of the money, "he said in a speech to the Economic Club of New York.
Debt-driven economic policy and its consequences were the main motivation behind Bitcoin (BTC), which emerged after the economic crisis of 2008.
As hard money with a deflationary supply impossible to manipulate, Bitcoin is increasingly being compared with gold as a hedge against constant erosion in the value of fiat currencies.