Rereading nostr:npub1trr5r2nrpsk6xkjk5a7p6pfcryyt6yzsflwjmz6r7uj7lfkjxxtq78hdpu 's excellent expose on the Petrodollar recently and thinking: what would it seem like, if it seemed like (h/t nostr:npub1sfhflz2msx45rfzjyf5tyj0x35pv4qtq3hh4v2jf8nhrtl79cavsl2ymqt ) the petrodollar system was coming to an end, and the US knew it, and was embracing cryptodollars as a replacement for petrodollars, not by accident but by design.
I think it would look a lot like some of the stable coins we are seeing today, exporting our inflation out into the world through making stablecoins available in hundreds of countries where our banking system doesn't reach, and driving up a demand for US treasuries by stablecoin issuers, which pushes down US treasury yields, allows issuance of cheap debt, etc. Just like the petrodollar did.
Paul Ryan's recent comments show a clear understanding of this picture.
Replies (14)
Been saying this… Tether was co-opted by CIA once they realized they could do this
Too little too late. Gross stablecoin issuance would have to go up 10x from here in a very very short period of time to have any meaningful impact on helping finance the US’s massive (and growing) fiscal deficits. And that’s just for ONE SINGLE year. NOT cumulative.
The current accumulated 100+ billion in stablecoin issuance sounds like a big number, but it is just a few weeks worth of US fiscal deficits that need financing.
If this is “their plan”, it’s a really short sighted one.
Just sayin. 🤷♂️
Seems very likely… In the short term, this would give a lot of hyperinflating citizens access to the dollar via tether, but collapse their own economies faster. From what I understand, this would force all the dollars to come back to the US and over inflate asset prices until the global economy crashes completely.
It’s a long term plan. The dollar isn’t collapsing tomorrow despite what people on nostr fantasize about lol. Bretton woods took a long time to play out, so did petrodollar, this is setting up the next 100 years.
was thinking something similar although not as a planned per se gambit but more like Bitcoin as a technological tool coming online at an opportune time allowing the unwinding of the petrodollar by the US
In the medium term it would also really help the US Government to have a pathway to pegging to Bitcoin, especially if Fort Knox doesn’t have the gold they claim it does and BRICS does properly bifurcate world trade with a gold-backed currency. Luke Gromen explainer in this note:
How would they do that? Well how does some gigantic ETF honeypots that could easily be 6102ed sound?
nostr:note1kh8h3vvjrkx3llcsl8dv3cdkqzhyk6yy6h7am5k73l5jy5dh3ewsk8xnk9
The Gold is gone.
We're just six months away from what I am convinced is THE singularity for bitcoin: Jan 1, 2025, the date where the BIS regulation kicks in allowing central banks to put up to 2% of their reserves in crypto (technically BTC but likely other stuff like ETH too).
I think so.
Understandable that they don’t seem overly concerned about de-dollarisation if Gromen’s thesis is right and they’re planning to skip a gold re-peg and move straight to a Bitcoin peg eventually.
US can much more easily fuck with international gold settlements with their armed forces. They might not control Bitcoin but they don’t need to defend it like gold being shipped around, and they can get a big chunk and leverage existing network effects of the dollar.
Good luck being a HODLer in a Western country if that happens. Your Gov will come knocking in no time.
You think CBs will all be jumping in immediately?
It just takes one. Then, it's pure game theory.
How about the USA starts manufacturing products competitively again and stops with the financial chicanery of funny money alchemy?. So sick of of these bunch of crooks engaged in the business of pulling the wool over eyes and running an extortion business. Run an honest trade for once ffs !
Hundreds of countries. Huh?
More than a hundred lol.
