El Salvador President Nayib Bukele, a well-known backer of Bitcoin BTC/USD has raised questions about the sustainability of the U.S. government’s capacity to print endless amounts of money.
What Happened: On Monday, Bukele took to X, formerly Twitter, to raise concerns about the U.S. government’s monetary policies.
He questioned, “Can the government of the United States really keep printing unlimited amounts of money out of thin air?”
This video shared in the tweet was of his recent appearance at the U.S. conservative gathering, CPAC, where he urged the next U.S. President to fight against “dark forces,” according to an NPR report.
Talking to the audience in English, he remarked that the high taxes in the U.S. were “not really funding” the government.
Bukele said that Treasury bonds instead financed the U.S. government. He said these bonds are in turn purchased by the Federal Reserve, which finances the operation through printing money. He then went on to say that the Fed was backed by those very treasury bonds.
During the remarks, a member of the audience yelled Bitcoin BTC/USD. He said, “Someone could ask if the government can print unlimited amounts of money out of thin air, why do they collect taxes?”
The leader said the answer was “simple but shocking.” He said it was simply to uphold the “illusion” that the people are funding the government.
See Also: A Crypto Wallet Turned $876 To $1.2 Million in 91 Days Trading These Tokens
Bukele’s comments arrive amidst escalating criticism of his governance. Democratic legislators in the U.S. have voiced concerns about the “authoritarian” actions and “democratic backsliding” in El Salvador under his administration.
Why It Matters: Bukele’s remark about U.S. financial policy may reflect his interest in alternative economic models like cryptocurrency. In June 2021, El Salvador became the first country to adopt Bitcoin as legal tender, a move orchestrated by Bukele himself. This groundbreaking decision allows Salvadorans to pay taxes in Bitcoin and exempts Bitcoin exchanges from capital gains tax.
Bukele recently declared victory in El Salvador’s presidential election for a second term, a move that has been met with widespread criticism due to a ban on consecutive terms being in place. Nevertheless, his leadership has reportedly led to a significant drop in crime rates, transforming El Salvador from one of the world’s most violent countries to one of the safest in Latin America.
Price Action: Bitcoin traded 8.9% higher at $56,164.78, according to Benzinga Pro data at the time of publishing.
Photo by Gobierno Danilo Medina on Flickr
Read Next: Nearly $1 Billion In Bitcoin Withdrawn Leaving Coinbase With Lowest Reserve Since 2015
Engineered by Benzinga Neuro, Edited by Shivdeep Dhaliwal
The GPT-4-based Benzinga Neuro content generation system exploits the extensive Benzinga Ecosystem, including native data, APIs, and more to create comprehensive and timely stories for you. Learn more.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
