Elon Musk recently signalled possible support for ending the US Federal Reserve by resharing a tweet from Utah Senator Mike Lee and posting a simple "100".
Lee’s post advocated for increased executive control over monetary policy and called for dismantling the central bank, criticizing Fed Chair Jerome Powell's statement that he would not resign if asked by incoming President Donald Trump.
Lee shared on X (formerly known as Twitter):
“The Executive Branch should be under the direction of the president. That's how the Constitution was designed. The Federal Reserve is one of many examples of how we’ve deviated from the Constitution, in that regard. Yet another reason why we should end the Fed.”
This call to abolish the Federal Reserve reflects a rising sentiment among proponents of sound money and Bitcoin advocates who argue that centrally managed fiat currencies are vulnerable to inflation and devaluation.
Notably, since the Federal Reserve's founding in 1913, the US dollar has lost approximately 96% of its value, fueling further debate on the future of American monetary policy.
The national debt, representing the cumulative borrowing by the US federal government, has surged from $394 billion in 1924 to over $35 trillion in 2024, according to Fiscal Data.
This escalating debt raises concerns about long-term economic stability, with many viewing Bitcoin as a hedge against inflation caused by years of Federal Reserve monetary expansion.
Florida CFO Jimmy Patronis is advocating for the state's pension funds to invest in Bitcoin to safeguard purchasing power amid the dollar's decline.
In July 2024, Wyoming Senator Cynthia Lummis introduced the Bitcoin Strategic Reserve bill, citing inflation and the erosion of purchasing power as driving factors.
President-Elect Donald Trump recently hinted at exploring Bitcoin to address the $35 trillion debt, stating, "crypto has got a great future. I think it really does. Maybe we will pay off the $35 trillion in crypto.”
However, Ric Edelman, founder of the Digital Assets Council of Financial Professionals, expressed doubt, seeing Trump's suggestion as "a fun sound bite" but unlikely to gain traction or endure under future administrations:
“I have no doubt that a Bitcoin reserve could sharply reduce and even perhaps eliminate our national debt.”
With regard to Musk's alleged support, many in the community were quick to voice their concern, citing the dangers of ending the Fed.
Some called it "unwise.”
With Trump's recent election just days behind us, only time will tell if this decision will move forward.
Is this a step too far, or does the idea warrant serious consideration?
The crypto industry is actively influencing the 2024 U.S. election, with Super PACs spending millions to back crypto-friendly candidates. However, ethical concerns arise amid the surge in crypto spending, highlighting the need for transparency and accountability in political interactions.
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