Lacalle points to the alarming rise in national debt, exceeding $34 trillion and growing by $1 trillion every hundred days. He argues this is paradoxical during a period of purported economic recovery and questions official narratives of strong growth. 

The crux of Lacalle’s warning is the sheer velocity of debt accumulation compared to GDP growth. He challenges the perception of recovery, citing diminishing purchasing power of salaries and increased financial strain on American families. 

Lacalle critiques Modern Monetary Theory, which posits unlimited government spending is possible with controlled inflation. He argues U.S. fiscal expansion despite 20% inflation over four years shows reckless disregard for the economy. 

While Bitcoin has surged past $62,000 amid inflation, Lacalle argues it does not pose the primary threat to the dollar as global reserve currency. Rather, erosion of confidence in U.S. fiscal and monetary policies risks abrupt loss of monetary sovereignty, higher borrowing costs, runaway inflation, and potential dollar dethronement. 

Lacalle further, warns the ideological allure of Modern Monetary Theory masks grave dangers of fiscal irresponsibility.

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