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Bitcoin ‘Going to Take Over’ – Elon Musk Backs Shock $40 Trillion U.S. Dollar Collapse Warning Amid Price Boom
by Billy Bambrough
Forbes
Bitcoin has surged over the last year, propelled higher by Wall Street’s embrace of crypto and U.S. president Donald Trump’s support (despite Google revealing a serious BlackRock bitcoin nightmare just got a lot worse).
The bitcoin price set a new all-time high of $112,000 per bitcoin last month, surging 50% from its April low and helped by U.S. vice president JD Vance issuing a huge crypto prediction.
Now, as the Covid-era meme stock craze turns to bitcoin, Tesla billionaire Elon Musk has restarted his campaign against out-of-control U.S. government spending, backing a warning that bitcoin could “take over” from the U.S. dollar as the world’s reserve currency.
Cracks Are Appearing in the Tariff-Era Economy. Think Stagflation.
by Martin Baccardax
Barron’s
The message wasn’t great. The latest data suggest slowing economic growth with the potential for faster inflation. It could be a toxic combination in that the inflation risk could make it harder for the Federal Reserve to lower rates to prop up the economy as it normally would.
Hiring is slowing, consumers are spending less, and costs are rising in the broadly defined services sector, which powers more than two-thirds of growth in gross domestic product.
Billionaire Ray Dalio Warns of ‘Economic Heart Attack’ as Debt Crisis Escalates
Dalio warns of debt crisis, saying Bitcoin and gold might do “relatively well.” Top leaders also echo that Bitcoin might help tackle debt.
by Anushka Basu
The Street
Billionaire investor Ray Dalio issued a dire warning on June 4 about the U.S. economy, stating that it is on the verge of suffering an “economic heart attack” due to unsustainable national debt. In a post on X and a summary of his new book, “How Countries Go Broke: The Big Cycle,”
He compared the debt system to a circulatory system that is clogged with waste. When debt service becomes an impediment to essential expenditures, and Chinese, Japanese, and even U.S. investors refuse to buy U.S. bonds, he warned, the government must either borrow again or print money—neither outcome is desirable.
Bitcoin and gold might rally
In the case of the latter outcome, it leads to inflation and the debasement of the dollar.
Safe-Haven Gold Rises On Weaker Dollar, Simmering Global Uncertainty
by Reuters
CNBC.com
Gold rose 1% on Wednesday, supported by a softer dollar and weak U.S. data, as investors grappled with mounting economic and political uncertainty.
Spot gold climbed 0.8% to $3,378.22 an ounce by 02:02 p.m. ET (1802 GMT), after rising as much as 1% earlier. U.S. gold futures settled 0.7% higher at $3,399.20.
The U.S. dollar index (.DXY) fell 0.5%, making gold cheaper for buyers holding other currencies, while benchmark U.S. 10-year Treasury yields edged lower.
“The U.S. services sector – two-thirds of the economy – contracting for the first time in a year has goosed gold a percent higher after bullion had shrugged off a weak though historically volatile ADP employment report,” said Tai Wong, an independent metals trader.
Trump Wants Debt Limit ‘Scrapped’ to Protect America From ‘Economic Catastrophe’
[Ed. Note: Unlimited debt. That would NEVER lead to ‘economic catastrophe’]
by Nick Gilbertson
Breitbart.com
President Donald Trump shared on Wednesday that he wants the debt limit “scrapped,” which Sen. Elizabeth Warren (D-MA) has also called for.
Trump issued a statement on Truth Social Wednesday afternoon.
[…] “I am very pleased to announce that, after all of these years, I agree with Senator Elizabeth Warren on SOMETHING. The Debt Limit should be entirely scrapped to prevent an Economic catastrophe,” he wrote.
“It is too devastating to be put in the hands of political people that may want to use it despite the horrendous effect it could have on our Country and, indirectly, even the World,” he added.
Trump shared an image of a post on X that Warren put out Friday, in which she advocated for legislation to do away with the debt ceiling.
The ‘Big Beautiful Bill’ Will Add $2.4 Trillion to the Deficit
That total will rise to about $3 trillion once the interest costs of more borrowing are included.
by Eric Boehm
Reason.com
In March, President Donald Trump stood before a joint session of Congress and vowed to “do what has not been done in 24 years: balance the federal budget.”
The first major legislative package of Trump’s second term, however, will throw the federal budget farther out of balance, the Congressional Budget Office (CBO) concluded in an updated assessment of the bill.
The CBO estimates that the One Big Beautiful Bill Act, which cleared the House late last month and is awaiting a vote in the Senate, will increase deficits by $2.4 trillion over the next 10 years. The bill will reduce tax collections by an estimated $3.75 trillion over that period, while reducing government spending by an estimated $1.3 trillion.
Fed Governor Lisa Cook Sees Tariffs Raising Inflation and Complicating Rate Policy
Fed officials generally view tariffs as one-off occurrences for prices, but the broad range of the Trump levies could change the equation.
by Jeff Cox
NBC News
Federal Reserve Governor Lisa Cook expressed concern Tuesday with the progress on inflation, saying recent lower readings could reverse after tariffs work their way through the economy.
In addition, Cook said she expects President Donald Trump’s moves on trade policy could take a toll on the labor market, though she noted that the economy for now is in relatively good shape.
“I do not express views on the Administration’s policies. But I do study the economic implications, which appear to be increasing the likelihood of both higher inflation and labor-market cooling,” the policymaker said in a speech to the Council on Foreign Relations in New York.
30 Trillion Dollars in 30 Years – The Greatest Party in the History of the World Has Destroyed America’s Future
by Michael Snyder
The Economic Collapse Blog
When you spend 30 trillion dollars that you do not have, it is easy to create an illusion of prosperity. In 1995, the nation was obsessed with the O.J. Simpson trial, “Toy Story” was the biggest movie of the year, the Sony Playstation made its debut in the United States, and Bill Clinton was in the White House. At that time, the U.S. national debt was right on the verge of crossing the 5 trillion dollar mark. Today, the U.S. national debt is sitting at 36.2 trillion dollars. That means that we have added more than 30 trillion dollars to the national debt in just 30 years.
[…] So what did we get for 30 trillion dollars?
We got the greatest party in the history of the world.
Over the past three decades, we have been enjoying an obscenely inflated standard of living that we did not deserve.
The U.S. Dollar is at a Critical Inflection Point
by Jesse Colombo
GoldSeek
The U.S. Dollar Index is at a critical inflection point, and how it behaves from here will have a major impact on the direction of gold, silver, and commodities.
As a quick reminder, the U.S. dollar typically trades inversely with commodities—when the dollar rises, commodity prices often fall, and vice versa. This is where intermarket analysis comes into play—a method of examining related markets to gain insights and anticipate moves across asset classes.
As a reminder, I track the dollar via the U.S. Dollar Index—a measure of the dollar’s exchange rate against a basket of major world currencies (not its purchasing power).
I’ve been highlighting how the U.S. Dollar Index has been teetering on the critical 100 level—a key technical support that dates back to 2023.
Will the U.S. Dollar Continue to Weaken Amid Economic Uncertainties and Rising Treasury Yields? Claudio Irigoyen Answers
The US dollar is expected to remain somewhat soft, but not necessarily experience a sharp disorderly decline, said Claudio Irigoyen, head of global economics research at BofA Global Research. In a conversation with Himadri Buch, New York-based Irigoyen shared his views on the US dollar outlook, treasury yields, the fiscal bill and why India continues to stand out in the emerging markets pack. Edited excerpts:
by Himadri Buch, ET Bureau
Economic Times
The US treasury yields have been rising while the US dollar is struggling to stay steady. Is there a crisis of confidence?
What we are witnessing is probably a recalibration of expectations in response to a confluence of fiscal and policy uncertainties. The uncertainty is certainly weighing on consumer and business sentiment, prompting a natural wait-and-watch approach among companies, particularly about investment decisions. However, this hesitation, when paired with the broader fiscal gap, is prompting markets to demand a higher risk premium on US assets. That is leading to a sharp rise in treasury yields. At the same time, global investors, who had been heavily overweight on US assets and underweight on European assets, have begun rebalancing their portfolios.