Nouriel Roubini Thinks El Salvador President Should Be Impeached Over Bitcoin

Nobel Laureate Nouriel Roubini has called Nayib Bukele a “criminal president.”

Nobel Laureate Nouriel Roubini has stepped up his criticism on El Salvador President Nayib Bukele, arguing that he should be impeached for “bankrupting” the country with his Bitcoin gamble.

Nouriel Roubini said:

“El Salvador’s experiment with Bitcoin is an unmitigated disaster: whoever held BTC lost 50%, the country spread is thru the roof and the sovereign is near bankrupt. They should impeach that buffoon @nayibbukele, a criminal president who is bankrupting the country!”

Moody’s downgraded El Salvador’s sovereign credit rating earlier this month, citing fears that the country’s bold Bitcoin gamble may prevent it from obtaining a much-needed $1.3 billion loan from the International Monetary Fund (IMF).

Moody’s analyst Jaime Reusche told Bloomberg that increasing the government’s exposure to Bitcoin will only worsen El Salvador’s fiscal profile:

“If it gets much higher, then that represents an even greater risk to repayment capacity and the fiscal profile of the issuer.”

El Salvador has $800 million in dollar-denominated bonds due in January 2023. Because of financial issues and the uncertainty around Bitcoin, the yield on those bonds jumped to 34% early this month. They had the poorest performance in the entire globe in 2021.

El Salvador, which has the world’s most distressed national debt, is now planning to sell Bitcoin-denominated “volcano bonds” in collaboration with blockchain pioneer Blockstream and iFinex, the parent company of Tether and Bitfinex. A portion of the monies generated will be utilized to build “Bitcoin City,” a libertarian haven.

Bukele received criticism following Saturday’s spectacular Bitcoin sell-off. It is reported that the country’s president lost more than $20 million by acquiring Bitcoin using treasury cash.

Despite the criticism, the “CEO of El Salvador” resumed his Bitcoin purchasing binge.

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Patrick

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