Trump states: Maybe we’ll pay off the $35 Trillion dollar Debt with crypto

Trump at event says, "I will write out a little piece of paper $35 Trillion Crypto, Presto - WE HAVE NO DEBT."

Sep 26, 2024

The suggestion by a presidential candidate to pay off a $35 trillion national debt with cryptocurrency is an absurd and economically unsound proposal that demonstrates a profound misunderstanding of both national finance and the nature of cryptocurrencies.

This idea is as ludicrous as the previously floated notion of minting a $30 trillion coin to eliminate the national debt.

Firstly, cryptocurrencies are not backed by any tangible assets or government guarantees. Simply creating or obtaining $35 trillion worth of crypto would not magically erase the national debt.

The value of cryptocurrencies is highly volatile and speculative, making them an unreliable means of settling such massive financial obligations.

Secondly, even if it were possible to acquire that much cryptocurrency, attempting to use it to pay off the national debt would likely cause a catastrophic devaluation of the crypto asset itself.

The sudden influx of such a massive amount of any currency into the market would lead to hyperinflation and economic chaos.

Lastly, this proposal ignores the complex nature of national debt, which is held by various entities including foreign governments, domestic investors, and government trust funds. These debt holders would be unlikely to accept payment in an unstable, unregulated digital currency.

Historical Examples of Absurd Debt Solutions

French Revolution's Church Property Seizure: In 1789, the French Revolutionary government seized church properties, including plates, chalices, and silver coins, to pay off war debts. This desperate measure ultimately failed to solve the financial crisis and contributed to further social unrest.
Weimar Republic's Money Printing: In the early 1920s, the German government attempted to pay off war reparations by simply printing more money. This led to one of the most infamous cases of hyperinflation in history, with prices doubling every few days.
Zimbabwe's Farm Seizures: In the early 2000s, Robert Mugabe's government in Zimbabwe seized white-owned farms in an attempt to redistribute wealth and boost the economy. This ill-conceived plan led to economic collapse, hyperinflation, and widespread poverty.

These historical examples, like the crypto debt proposal, demonstrate how desperate and misguided attempts to solve complex economic problems can lead to disastrous consequences. They underscore the importance of sound economic policies and the dangers of oversimplified solutions to intricate financial challenges.

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I think cryptos got a great future, I think it really does. Maybe we’ll pay off the $35 Trillion dollar Debt with crypto. I will write out a little piece of paper $35 Trillion Crypto, WE HAVE NO DEBT. - Donald Trump