What happened?
Robert Kiyosaki, author of “Rich Dad Poor Dad,” has suggested the United States might be headed for what he labels a “Greater Depression.” This is due to conditons such as the national debt now exceeding $37 trillion and household debt reaching an all-time high of $18.39 trillion. Kiyosaki’s warnings have gained attention with the weakening labor market and rising credit card delinquencies as indicators of increased financial pressure on Americans.
Who does this affect?
This situation largely affects everyday Americans, who are reportedly struggling to keep up with higher borrowing costs. The employment sector is also impacted, with new jobs in August showing that only 22,000 positions were added and unemployment rose to 4.3%. Investors—especially those eyeing Bitcoin due to its scarcity—are also affected as they anticipate potential responses to economic uncertainty.
Why does this matter?
The rising national debt and the predicted “Greater Depression” could negatively impact the US economy, causing market instability. If the Federal Reserve fails to control inflation effectively, growth may stall, leading to increasing bankruptcies, decreasing consumer confidence, and slower growth. Amidst this financial instability, Bitcoin’s finite supply has been highlighted as a potential hedge against economic uncertainty, making its market value closely watched by investors.