In the face of a growing fear of the debt America is amassing, Mike Novogratz, the CEO of Galaxy Digital, makes a dire warning, which dictates an urgent government reaction to avoid a looming disaster. In view of the nation’s debt-to-GDP ratio reaching 125%, Novogratz reveals that of the last 34 countries that reached such levels, only 33 had to restructure their debt.

Novogratz stresses the urgency of the nation’s fiscal health to avoid a full-blown debt crisis. He supports severe steps to control expenses, warning that they could lead to risks for the economy. Novogratz’s caution highlights the urgent necessity for policymakers to take definite measures to strengthen the nation’s fiscal stance and create durable growth in the economy.

Amid increasing debt profiles and the threat of possible currency devaluation, Mike Novogratz proposes Bitcoin (BTC) as a hedge against prospective debt. With the Bitcoin halving event set to take place this week, he continues to be positive about Bitcoin’s price direction while highlighting its strength and potential in times of economic uncertainty.

Mike Novogratz Urges Drastic Measures Amid Debt Concerns

With Mike Novogratz ringing the bell on the country’s debt problem, the market participants are guessing on ways to prevent possible crises. Novogratz advises the administration to make drastic spending cuts as a measure of controlling expenses to avoid what he calls a “debt death spiral” and to increase taxes in certain areas as a way of balancing spending cuts with revenue generation.

The U.S. is at around 125% debt-to-GDP. Of the last 34 countries that got this indebted, 33 had to restructure their debt… The government needs to cut spending dramatically if we’re going to stand a chance against what may be a debt death spiral. Tighten the belt!!! pic.twitter.com/M7JhcXNeQD

— Mike Novogratz (@novogratz) April 16, 2024

At the moment, there is a certain apprehension about the banking sector’s resilience in times of economic instability. This is exactly when the Galaxy Digital CEO’s call for action is delivered. Analysts reiterate Novogratz’s feelings, stressing the role of bold government intervention aimed at preventing the financial crisis. As the policymakers consider what to do next, the spotlight remains on the efficiency of fiscal measures in stabilizing the national economy.

Kiyosaki’s Advice Echoes Amid Economic Uncertainty

Renowned investment guru and the author of “Rich Dad Poor Dad,” Robert Kiyosaki’s advice to investors to keep on investing in “real assets” like gold, silver, and Bitcoin reverberates in the light of increasing uncertainty regarding the debt ceiling. Galaxy Digital’s acquisition of $76 million of Ethereum represents the increasing interest in alternative assets as hedges against economic instability. The analysts perceive the step as a strategic diversification strategy due to the rising worries about conventional investments.

Read Also: Samson Mow Predicts Bitcoin ‘Omega Time’ Amid Price Volatility

The post Bitcoin’s Role in Crisis: Mike Novogratz Sounds Alarm on Debt appeared first on CoinGape.

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Filed under: News - @ January 1, 1970 12:00 am