Economist Peter Schiff has warned that the U.S. will default on its debt obligations. He additional careworn: “All of the dangerous stuff that they’re saying goes to occur if we don’t increase the debt ceiling is assured to occur as a result of we do increase the debt ceiling.”
Economist and gold bug Peter Schiff warned Monday on the Peter Schiff Present podcast that the US will default on its debt obligations and that elevating the debt ceiling may have devastating penalties.
Commenting on politicians claiming that the U.S. debt ceiling should be raised “as a result of we pay our payments,” the economist argued: “We by no means pay our payments … We have now $31.7 trillion in debt. That’s $31.7 trillion of payments that we have now not paid. We didn’t pay them. We borrowed the cash. And we wish to carry on borrowing the cash. No one desires to pay any of those payments.” Schiff cautioned:
It’s solely a query of time. It’s not a query of if. It’s only a query of when. We are going to default on our debt. All of the dangerous stuff that they’re saying goes to occur if we don’t increase the debt ceiling is assured to occur as a result of we do increase the debt ceiling.
He defined that finally, the borrowing and cash printing by the Federal Reserve will precipitate a monetary and forex disaster. “It’s not about America not desirous to borrow. It’s about the remainder of the world not desirous to lend as a result of they know we’re not going to pay them again. And one of many causes they know that’s as a result of we’ve already informed them. We’re telling them that repeatedly within the debt ceiling battle,” he opined.
The economist detailed that the U.S. might default on its debt obligations in two kinds. The primary is “an trustworthy default the place the federal government simply doesn’t pay again bondholders” and the second is “a dishonest default the place we pay with inflation.” Within the latter case, he careworn that the Federal Reserve will simply “print cash and pay folks again with nugatory or near-worthless paper.”
Relating to commentary within the media framing the debt ceiling as the issue, Schiff argued that the issue is definitely the debt. He cautioned:
The issue is that Congress and the president maintain working up increasingly more debt and each time we get to the ceiling, we both increase it or droop it … The issue is that we maintain elevating the ceiling, not that we received’t increase it. In reality, the menace is that we increase it once more.
Do you agree with Peter Schiff that the U.S. will default on its debt and elevating the debt ceiling will make the issue worse? Tell us within the feedback part under.
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Bitcoin prices have retained much of their recent gains today. (Photo illustration by Chesnot/Getty … [+]
Bitcoin prices have maintained their strength over the last 24 hours, retaining the vast majority of the gains that materialized during the cryptocurrency’s latest rally.
The world’s largest digital currency by total market capitalization was trading above $65,000 at the time of this writing, according to CoinMarketCap data.
The digital asset held that value after rallying more than 8% in under 24 hours, reaching its highest since approximately April 24 and then extending those gains, additional CoinMarketCap figures show.
Focusing in on bitcoin’s short-term outlook, several market observers highlighted key fundamental developments that could impact the digital asset’s price, in addition to singling out price levels that could provide key support or resistance.
Brett Sifling, an investment advisor for Gerber Kawasaki Wealth & Investment Management, offered some input on this situation.
“Bitcoin remains range bound since the end of February, as the halving event wasn’t enough to push it to new highs,” he stated via emailed comments.
“I don’t see any other major catalysts on the horizon, other than increased institutional adoption. There is also the potential for the Fed to lower rates later this year, which could bring increased optimism for risk-on assets like Bitcoin,” said Sifling, referring to the federal funds rate, which is controlled by Federal Reserve policymakers.
The decisions of the Federal Open Market Committee have generated quite a bit of visibility over the last few years, as these government officials pushed the fed funds rate, which has an impact on broader borrowing costs, to its highest level since 2008.
This, in turn, has provided a significant headwind for economic activity, but inflation data has remained stubbornly high at many points in spite of high borrowing costs.
Yesterday, headline inflation figures that fell short of economist estimates were cited as a catalyst that helped bitcoin prices rally. This development was credited with helping provide investors with greater hopes that the Fed will cut rates soon.
As for the key price levels that technical traders should monitor going forward, Sifling offered some guidance.
“The recent all-time highs in March of around ~$74,000 is a key level to watch, as well as the lows of this recent range at ~$56,500,” he stated.
Grant Tungate, head of business development for Blockforce Capital, also shed some light on this matter.
“I don’t want to make any predictions but I’ll provide some commentary on levels I believe are important,” he said via email.
“Key levels are the new 30d high ~$67.3k, then the all time high ~$74k. On the downside the 30d low ~$57k is an important zone,” Tungate added, pinpointing figures similar to those identified by Sifling.
Armando Aguilar, an independent cryptocurrency analyst, also offered some input on this subject.
“The next critical support level for BTC holds in the high $62k range, if BTC struggles to maintain these levels it could retest low $61k range,” he stated.
“The resistance levels for BTC are in the mid $66k which if breached, we could see the blue chip cryptocurrency cruise to mid/high $68k,” Aguilar added.
“The ATH does provide a key resistance level which would require BTC inflows to pick up as it was the case for the first 2 months since launch. Don’t immediately see levels passing ATH as most custodians have reached maximum distribution capacity thus seeing low inflows into BTC,” he concluded.
Disclosure: I own some bitcoin, bitcoin cash, litecoin, ether, EOS and sol.
PORTLAND — The Portland Police Department is warning residents about a scam where callers, posing as officials from the Cumberland County Sheriff’s Office, claim that the victims are in contempt of court for failing to appear as witnesses in a trial.
The scammers then demand payment of a substantial fine to avoid further charges, including arrest.
Victims are being instructed to make payments through Coinstar machines using Dogecoin or other cryptocurrencies.
The phone number used for the scam calls, when searched on Google, appears to be associated with the Cumberland County Courthouse.
Authorities urge anyone who receives such calls not to engage with the scammer.
Instead, they should contact the courthouse directly at 207-822-4200 to verify the legitimacy of the call.
Officials have clarified that the courthouse will never request payments over the phone.
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