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Liberty Caller Editorial Team

Bitcoin Surges as Debt Threatens Economy

America’s national debt has exploded to a staggering $37 trillion under Trump’s “One Big Beautiful Bill Act”.

Story Snapshot

  • US debt hits record $37 trillion, growing over $5 billion daily despite Trump’s promises of fiscal responsibility
  • “One Big Beautiful Bill Act” projected to add $4.1 trillion more debt over next decade, alarming fiscal conservatives
  • Bitcoin analysts predict cryptocurrency could reach $132,000 as debt crisis fuels inflation concerns
  • Debt-to-GDP ratio now stands at 119.4%, exceeding the entire US economy for the first time in history

Trump’s Spending Bill Adds Trillions Despite Conservative Promises

President Trump signed the “One Big Beautiful Bill Act” on July 4, 2025, claiming it would cut government waste and reduce spending. Congressional Budget Office analysis reveals the legislation will actually add $4.1 trillion to the national debt over the next decade. Rep. Thomas Massie and other fiscal conservatives have publicly criticized the bill, noting it preserves tax cuts while boosting defense and border spending with minimal welfare reductions. The legislation passed without any Democratic support, highlighting deep partisan divisions over fiscal policy.

The debt milestone arrived just one week after the Treasury Department reported $36.93 trillion on August 5, demonstrating the unprecedented speed of fiscal deterioration. Federal borrowing now exceeds $5 billion daily, far outpacing economic growth and tax revenue collection. Elon Musk warned the bill would push annual deficits to $2.5 trillion, creating unsustainable fiscal pressures that threaten America’s economic foundation.

Fiscal Crisis Threatens Constitutional Government

The debt-to-GDP ratio has reached 119.4%, meaning America owes more than its entire annual economic output. This represents a fundamental threat to constitutional governance, as excessive debt forces government dependence on creditors and limits policy flexibility. The Congressional Budget Office projects debt will exceed $52 trillion by 2035 if current trends continue, creating a fiscal time bomb that could trigger economic collapse.

Rising debt service costs increasingly crowd out essential government functions, potentially forcing cuts to defense spending that protects American sovereignty. Interest payments on the debt now consume a growing share of federal revenue, leaving fewer resources for border security, infrastructure, and other core government responsibilities. This fiscal deterioration undermines America’s ability to respond to national emergencies and defend constitutional principles against foreign adversaries.

Bitcoin Emerges as Inflation Hedge Amid Monetary Debasement

Ryan Lee from Bitget notes direct correlation between debt growth and Bitcoin price increases, while Jamie Coutts from Real Vision projects Bitcoin could reach $132,000 by year-end based on M2 money supply expansion. Arthur Hayes suggests Bitcoin could hit $250,000 if the Federal Reserve resumes quantitative easing to manage debt pressures.

The debt crisis forces the Federal Reserve into impossible choices between allowing inflation or triggering recession through interest rate increases. Higher rates make debt service costs unbearable, while lower rates fuel inflation that devastates working families. Bitcoin advocates position cryptocurrency as a constitutional money alternative that preserves purchasing power against government monetary manipulation and protects individual wealth from fiscal irresponsibility.

Sources:

US national debt hits record $37 trillion
National debt Treasury Department Trump
Key facts about the US national debt
Monthly Debt Update
Trump tariffs revenue

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