BlackRock (NYSE:BLK) CEO Larry Fink raised serious concerns about the long-term health of the U.S. economy, warning that unchecked national debt and growing fiscal deficits could undermine the dollar’s dominance as the world’s reserve currency.
What Happened: In his annual letter to shareholders released on Monday, he cautioned that digital assets like Bitcoin (CRYPTO: BTC) may emerge as a viable alternative if the government fails to rein in spending.
“The dollar’s position as the global reserve currency is not guaranteed,” Fink wrote.
He pointed to a troubling trend: since 1989, when the national debt clock first went up in Times Square, U.S. debt has expanded at triple the rate of economic growth.
He projected that interest payments on government debt will exceed $952 billion this year, surpassing defense spending for the first time.
If this trajectory isn’t corrected, Fink warned that by the end of the decade, every dollar of federal revenue will be consumed by mandatory spending and debt service—pushing the nation into a state of perpetual deficit.
While acknowledging the disruptive potential of decentralized finance, Fink …
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