Bank of America: U.S. Debt Increases by $1 Trillion Every 100 Days, Benefiting Assets Like Bitcoin

U.S. government liabilities are increasing by $1 trillion every 100 days, which helps explain why the prices of assets like gold and bitcoin are near all-time highs, Bank of America strategists said. Strategists led by Michael Hartnett said in a report on Friday that the pace of debt inflation is also accelerating. They estimate it will take just 95 days to rise from $34 trillion to $35 trillion. The consequence for the market, Bank of America said, is that with the recent rise in gold and bitcoin, trades related to "bond devaluation" are proving attractive. According to the report, the reasons for the increase in debt include economic stimulus to fight epidemics and recessions, as well as the financing of wars fought overseas, the budget deficit over the past four years is equivalent to 9.3% of gross domestic product. Pacific Investment Management Company (PIMCO) warned in a report this week that fiscal profligacy risks returning the U.S. debt market to the 1980s, and Pimco warned that "deficits are likely to continue to grow."