To investors, The Wall Street Journal published an op-ed over the weekend from former House speaker Paul Ryan titled Crypto Could Stave Off A US Debt Crisis. In the article, Ryan highlights the impending crisis our country faces:
One of Ryan’s proposed solution is to watch what is happening with dollar-backed stablecoins. He isn’t claiming that stablecoins will be the only solution, but the following two paragraphs highlight the current momentum in stablecoins and increasing importance of their rise:
This analysis would be important regardless of who was presenting it, but it carries more weight when coming from the former House speaker. Paul Ryan intimately understands the economic and monetary policy issues we face as a country. His focus on stablecoins will only bring more attention to the potential solution. Stablecoins are not the only solution though — I was talking to friends at lunch yesterday about an interesting scenario worth sharing. The explosion in artificial intelligence is drastically increasing the efficiency and productivity of companies. I am not talking about the shiny, new “AI companies” that seem to be everywhere, but rather the existing companies that are leveraging AI internally to improve operations. These companies can now get more done with less people or less capital. This efficiency boom in productivity will lead to an increase in GDP. Based on some of the early data I am seeing, the GDP growth could be faster than the US debt growth. If this holds, which there is no promise that it will, then we could have a scenario where the debt-to-GDP ratio declines in the US over the coming months and years. This seemed impossible less than two years ago. If it happens though, the GDP growth would be a much-needed relief valve for a debt environment that seems out-of-control. The true solution is probably a mix of options. Stablecoins are going to provide a new set of buyers for US debt. Artificial intelligence is going to drive GDP growth at a faster pace than without it. Hopefully serious, responsible politicians are elected into office who attempt to balance the budget as well. Complex problems like the US economy can’t be solved with magic bullets. We need many different things to go right, which means we need various groups of people to work together. Politicians on both sides of the aisle. Wall Street, Silicon Valley, and Washington DC. We need everyone. Let’s work together like our country depends on it. Hope you all have a great day. I’ll talk to everyone tomorrow. -Anthony Pompliano Phil Rosen, the Co-Founder of Opening Bell Daily, interviews Anthony Pompliano. Topics include bitcoin, President Trump's recent support of the industry, interest rates, financial media, and more. Listen on iTunes: Click here Listen on Spotify: Click here Anthony Pompliano on Bitcoin, Bull Markets, Interest Rates, and the Presidential RacePodcast Sponsors
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