Coinbase CEO Brian Armstrong wrote a post on X on July 1 as U.S. debt reached over $39 trillion, claiming the American constitution lacks a cap on rising government spending and a requirement for hard-backed currency. Armstrong argued that the absence of fiscal safeguards pushes every democracy towards more debt and eventual loss of reserve currency status. His critique echoes previous warnings from Elon Musk, who has flagged soaring U.S. debt and unlimited fiat currency printing, arguing that Bitcoin, unlike traditional money, holds value due to its scarce supply.
Armstrong Criticizes U.S. Constitution on Debt and Currency
Armstrong, who co-founded Coinbase in 2012 and turned it into the largest cryptocurrency exchange in the United States, wrote on X that though the American constitution is "the most important political innovation ever," it lacks two things: a cap on rising government spending and a requirement for hard-backed currency. He claimed that the lack of fiscal safeguards pushes every democracy towards more debt and eventual loss of reserve currency status.
Armstrong further argued that politicians get elected by promising "free stuff" using "other people's money," with some voters receiving immediate benefits while future generations suffer the brunt of the spending. "The incentive structure is broken. What fixes it?" Armstrong wrote.
Elon Musk has previously flagged the soaring U.S. debt and the unlimited printing of fiat currency, arguing that Bitcoin, because of its scarce supply, tends to hold its value for long. Fiat currency, on the other hand, can be printed without any limit, which leads to the debasement of its value.
Armstrong Proposes Three Solutions to Fix U.S. Debt
As per the Coinbase CEO, there are three alternative solutions to fix the political economy:
- Write a new constitution for a new frontier on Mars, or special economic zones, or cyberspace.
- Add a politically challenging amendment to the constitution so that government spending and debt are better aligned.
- Pursue a hyper-economic growth model involving artificial intelligence (AI), robotics, and crypto to beat inflation.
Armstrong's third proposal is something even Musk has been arguing for. As per Musk, the AI age will be so productive that there will be such an abundance of goods and services that prices will decline, leading to deflation.
As far as the U.S. debt is concerned, the exact figure is $39.3 trillion currently, as per the U.S. Treasury.
FAQ
What did Brian Armstrong say about U.S. debt on July 1?
Brian Armstrong wrote a post on X on July 1 claiming that the American constitution lacks a cap on rising government spending and a requirement for hard-backed currency, arguing that the absence of fiscal safeguards pushes every democracy towards more debt and eventual loss of reserve currency status.
What three solutions did Armstrong propose to fix U.S. debt?
Armstrong proposed three solutions: write a new constitution for a new frontier on Mars, special economic zones, or cyberspace; add a politically challenging amendment to the constitution so that government spending and debt are better aligned; or pursue a hyper-economic growth model involving artificial intelligence, robotics, and crypto to beat inflation.
What is the current U.S. debt according to the U.S. Treasury?
The current U.S. debt is $39.3 trillion, as per the U.S. Treasury.
