Robert F. Kennedy Jr., a U.S. Presidential Candidate and nephew of President John F. Kennedy, has recently raised concerns over an impending economic “mega-crisis.” According to Kennedy, the banking collapse is just a part of a much larger problem that the nation is facing. He calls for urgent attention towards rebuilding the economy as job openings continue to plummet and inflation is harming the middle and working class.
In response to President Joe Biden’s reassurance that the banking system is “safe and sound,” Kennedy highlights the crashing bank stocks and argues that the American people deserve more than simple assurances. He also addresses the issue of bailouts which create moral hazards for banks driven by perverse incentives. Banks are enticed to take reckless risks with depositors’ money by the potential for vast returns or taxpayer-funded bailouts if they fail.
Kennedy speaks against the systemic issue of too-big-to-fail institutions that necessitate bailouts in the first place. He cites the recent seizure of First Republic Bank and its assets sale to JPMorgan Chase as an example.
On the topic of cryptocurrency, Kennedy criticizes President Biden’s proposed Digital Asset Mining Energy (DAME) excise tax, which would impose a 30% tax on cryptocurrency mining. He believes that cryptocurrencies, led by Bitcoin, are driving innovation within the industry and that the U.S. government’s restrictive stance will only push the innovation elsewhere.
While some argue for stringent control over cryptocurrencies to prevent their usage by criminals, Kennedy contends that not just criminals, but also dissidents and ordinary citizens desire privacy. Government control over bank accounts and payment platforms can be used to target enemies and suppress dissent. As such, Kennedy asserts the importance of both cash and cryptocurrencies in maintaining freedom until trust in government can be restored.
In conclusion, Kennedy’s warnings address multiple aspects of the looming economic crisis, from the banking system’s instability to the proposed taxation on the growing cryptocurrency industry. These warnings shed light on the need for a more balanced approach to repair the economy and foster innovation while addressing the privacy concerns around financial transactions.
Source: news.bitcoin.com
