30s Summary

Tesla and SpaceX CEO Elon Musk has shown support for ending the Federal Reserve by retweeting a post from Senator Mike Lee. Lee advocates for more presidential control of the US’s handling of money, citing the inability to remove Federal Reserve chairman Jerome Powell as a deviation from the constitution. This sentiment aligns with Bitcoin proponents who argue against central banks for their unpredictability and diminishing currency values. As US debt exceeds $35 trillion, calls for investing in Bitcoin have grown, even from officials such as Florida’s CFO Jimmy Patronis. Senator Cynthia Lummis has proposed a Bitcoin strategic reserve bill, and President Donald Trump has also suggested a potential Bitcoin stockpile.

Full Article

Elon Musk, the Tesla and SpaceX CEO, looks like he’s backing an idea to do away with the Federal Reserve Bank in the United States. He retweeted a post from Senator Mike Lee from Utah, who thinks there needs to be more control from the President over how they handle money and that having a central bank contradicts that.

In the tweet, Lee pointed out that the Federal Reserve chairman Jerome Powell wouldn’t have to step down from his job, even if newly elected President Donald Trump requested it. Lee sees this as a problem, and says it highlights a need for change. He tweeted, “The Executive Branch should be under the direction of the president. The Federal Reserve is a good example of how we’ve deviated from the Constitution. It’s another reason why we should end the Fed.”

This growing idea of getting rid of the Federal Reserve aligns with Bitcoin supporters and those who believe in having a stronger form of money. Their argument is that central banks, responsible for paper money like the US dollar, can be unstable and can decrease in value over time.

As the United States sinks deeper into debt—now higher than $35 trillion—Bitcoin is getting more and more praise as a safe bet against money losing its value, which comes from a long history of central banks like the Federal Reserve, creating new money on a regular basis.

Even state officials, like Florida’s Chief Financial Officer Jimmy Patronis, are pushing for the state to invest their pension funds into Bitcoin. They think this will protect the value of their money even if the US dollar keeps losing its plugging power.

In summer of 2024, Senator Cynthia Lummis from Wyoming brought a bill to the Senate suggesting the US keep a strategic reserve of Bitcoin. She said the main reason for this idea was major inflation causing money to lose its buying power.

Incoming President Donald Trump also unveiled potential plans to build a Bitcoin ‘stockpile’ in his talk at the Bitcoin 2024 conference in Tennessee. After his address, Trump hinted that Bitcoin might help pay off the national debt.