The founder of the Megaupload website, Kim Dotcom, a German entrepreneur and activist, has expressed his opinion that a temporary “default” by the United States would be beneficial for the country. In response to a tweet from President Joe Biden, who stated that a default would have negative consequences such as job losses, an economic recession, affected retirement accounts, and increased borrowing costs, Dotcom puts forward a different perspective.
According to the businessman, a temporary “default” would curb inflation and de-dollarization, end the conflict in Ukraine, and reduce exorbitant military spending. Furthermore, he argues that this would lead to the closure of the 800 US military bases around the world that he considers unnecessary and would provide the United States with the opportunity to reduce its debt and rebuild the “American dream.”
Dotcom argues that, in the event of a default, Biden would be forced to negotiate and significantly reduce spending, all the way to a fiscal surplus, without engaging in foreign wars or maintaining military bases in other countries. According to his perspective, by stopping the incessant printing of money, inflation would be ended, and by reducing the military budget by 90%, Americans would not have to worry about problems such as poor infrastructure, poor education, poor health care, or homelessness.
In short, Dotcom suggests that the United States should invest in its own country and stop trying to be the world leader. In his opinion, this would be a simple and beneficial solution for the nation.