President Biden’s economic advisor, Jared Bernstein, has stirred up debate with his recent comments on the US government’s ability to print money. In a recently screened documentary, Bernstein’s statements have drawn attention and criticism from financial experts and Bitcoin enthusiasts alike.
In a documentary titled “Finding the Money,” Bernstein asserted, “The US government can’t go bankrupt because we can print our own money.” This statement, while straightforward, has sparked intense backlash and raised questions about Bernstein’s understanding of economic principles.
the interviewer asks “They print the dollars so why does the government even borrow?”, to which Bernstein replied:
“Well, some of the language is just confusing. The government definitely prints its own money. The government definitely prints money and lends that money. The government definitely prints money.”
But then he pauses, and asks himself, “It then lends that money by selling bonds. Is that what that they do?” After hesitation, he replies himself, “They sell bonds and then people buy the bonds and lends the money. Yeah.“
Bernstein’s comments have been met with skepticism, with many questioning his grasp of basic economic concepts. Some financial experts argue that his statements oversimplify the complex mechanisms of government debt and money creation.
Bitcoin enthusiasts, on the other hand, highlight that this is the result of talking about the current monetary strategies outload. They don’t make sense and are very illogical. Bitcoiners see Bitcoin’s fixed supply limit of 21 million coins as a safeguard against the devaluation of fiat currencies.
Jared Bernstein’s Understanding of Money Printing
During the interview, Bernstein appeared to struggle to articulate his understanding of money printing and borrowing. In one instance, he rambled:
“the government definitely prints money and it definitely lends that money […] Is that what they do?
Yeah, they sell bonds. Yeah, they sell bonds. Right. Because they sell bonds and people buy the bonds and lend them the money.”
His remarks have left many scratching their heads and doubting his expertise. In one awkward moment, he stumbled through concepts, admitting, “I don’t get it. I don’t know what they’re talking about.”
In one instance he stated that “Language and concepts can be unnecessarily confusing.” That is what many Bitcoiners believe as well. They believe the wording and concepts around government’s creation of money has been twisted and made deliberately confusing.
The Bitcoin advocates believe that the simple truth is, governments creates money out of thin air, without anything backing it, and without limit. This has lead to money losing its value day after day.
Critics have raised concerns about the potential dangers of Bernstein’s views, suggesting that they could mislead the public and undermine confidence in the economy.
Scott Melker, a prominent figure in the Bitcoin community, expressed his concern, stating:
“This is terrifying. This is the Chair of the Council of Economic Advisers, the agency providing the President with economic advice, who has no idea what he is talking about.”
Bernstein’s comments have reignited discussions about the role of Bitcoin as a hedge against government spending and inflation. Bitcoin proponents argue that the digital asset’s fixed supply makes it an attractive alternative to government-controlled currencies.
The state of the economy is a pressing concern for many Americans, especially as the November presidential campaign intensifies. High prices and stubborn inflation have fueled frustration, with some attributing blame to President Biden’s administration.
Economic experts caution against oversimplifying complex economic issues. They stress the importance of understanding the nuances of government debt management and the implications of money printing on inflation and currency value.
Bernstein’s statements come at a time when the economy is a top concern for many Americans. With inflation on the rise and concerns about government spending mounting, the public is paying close attention to economic policy and leadership.
Despite serving as President Biden’s Chief Economist and Chair of the Council of Economic Advisers, Bernstein’s lack of formal training in economics has raised eyebrows, particularly in light of his struggles to articulate basic economic concepts.
Some question whether he is equipped to provide sound economic advice to the administration.
