Elon Musk had another post go viral on his platform, X, with this one eliciting more laughs than controversy.
Taking a screenshot from the rule page of the game of Monopoly, about how “the bank never goes bankrupt” as the “banker may also issue ‘new’ money,” Elon Musk reposted it with the added caption “how the Federal Reserve works.”
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Referring to the seemingly limitless amount of money the Federal Reserve can add to the circulating money supply, Musk added to a growing chorus of concern regarding the fiscal deficit.
Even Berkshire Hathaway’s (NYSE:BRK) Warren Buffett recently commented on the Federal Reserve’s predicament, saying “Jerome Powell is not only a great human being, but a very wise man. But he doesn’t control fiscal policy. Every now and then, he sends out a disguised plea, saying please pay attention to this.”
Whether the next administration in Washington will finally listen to him and make efforts to curtail the out-of-control fiscal spending remains to be seen, but Goldman Sachs (NYSE:GS) points out there might not be much of a choice.
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Financial focused X account, ZeroHedge, cited Goldman’s remark that “President Biden and former President Trump propose substantially different fiscal agendas, but they both face the same constraint: there is not nearly as much scope for fiscal expansion as either had at the start of their time in office.”
With the U.S. national debt now surpassing $34.7 trillion and amounting to over $266k per taxpayer, it’s worth questioning how much higher it can go before markets raise issues with the state of America’s finances.
One asset class that doesn’t have an unlimited supply is bitcoin, which was implied as a solution in one of the most popular replies to Elon Musk’s post by the account WatcherGuru, who posted “if only there was a decentralized currency not controlled by any individual or government.”
Even if investors don’t want to purchase cryptocurrency directly, they can now decide to purchase bitcoin via a spot ETF, such as the iShares Bitcoin Trust (IBIT), which has seen a strong start to the year, already up ~30% at the time of this publication.
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This article Elon Musk Compares The Fed’s Money Printer To A Game Of Monopoly As Goldman Warns Next President Faces A “Fiscal Constraint” originally appeared on Benzinga.com
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