I don’t think there’s a solid way to wipe out the debt, maybe to roll it over in an easier fashion, but all new debt issuance increases the money supply and I haven’t seen any serious plan from anywhere in American politics to fix the deficit

They become a buyer of US bonds. A new buyer

How does increased demand for debt issuance dissolve debt?

It could reduce interest on the debt if you are able to issue new debt to retire higher interest debt but it doesn't reduce or dissolve the debt it increases it.

This isn't even slightly hidden, just listen to Michael Saylor or David Sacks. Its by far the dominant narrative about the benefits of StableCoins to US dollar dominance in international trade, and it just so happens to massively benefit the PayPal mafia and Stripe, because they're biggest cost burden is fraud. StableCoins are cryptocurrency, so NYKNYC is just as valid for USDT and USDC as it is for Bitcoin. Pushing that burden onto the consumer gives consumers cheaper online payments in return for responsibility, cutting out Visa and MasterCard, which is why Visa and MasterCard are rushing to adapt to this new US monetary strategy.

By establishing dollar backed StableCoin cryptocurrency as the dominant medium of exchange for international trade the US are attempting to route around national governments by selling their treasuries indirectly to their citizens, who either want access to dollars for store of value (over their own inflationary currencies) or for international trade and remittances, they intend to uphold demand for US treasuries, meaning they can continue the Ponzi scheme by paying off old creditors with the income from new ones, thereby exporting US inflation.

USD inflation is global taxation.

But this whole scheme is a massive scam run by the tech bros, the PayPal mafia, venture funds who want to break the regulatory barriers to keep the incumbents in place. Their motivation is to increase the efficiency of online payments, so this works for them.

But the problem for the US government is that the dominant player is international StableCoin issuance is Tether, who are hardcore Bitcoiners. They don't store their own wealth in USTs. All of their own substantial profits are converted to bitcoin and investments in the ecosystem around it. And if they could easily do it they would create a euro backed StableCoin, if euro bonds register. That's why people like Senator Lummis have been attacking them, trying to bring them to heel on behalf of Trump.

If the real market is international buyers of US treasuries, to keep USD inflation offshore, then USDC is a bit player,a rounding error.

The other problem is that national financial regulators are not toothless. Brazil and India's digital payments are far superior to those in Europe and the US.

And esteem for the US is deeply intertwined with the demand for USD, the integrity that the political system in the US has relative to those in other countries. But Trump is now looked on as a clown, a buffoon, a Boris Yeltsin figure, compared to Mikhail Gorbachev. Gorbachev may have been responsible for many tragedies, but respect for the Russian political elites only collapsed with Yeltsin. Trump's self-sabotage in international relations matters in terms of the dominance of USD in international trade. If I'm an Indian, I can say what I like about Modi, because he's my president. But if you insult him, as an American, you insult my country and me by proxy. Same for Brazilians, Australians, Canadians, Mexicans, even the Iranians, and all the "shit hole" countries.

This is so obvious that I have to question whether Trump's backup plan is in fact the collapse of the USD, a scorched earth strategy that will promote Bitcoin as the dominant world reserve currency, in combination with gold, allowing massive inflation in the US to wipe out the debt, while lubricating online payments through efficiencies provided by StableCoins, cryptocurrency, and the tokenisation of debt and equities markets. This would be like the shock therapy approach in the Russian federation in the early 90s, which impoverished a generation and lead to general societal collapse temporarily. This would be absolutely brutal, dystopian, but there are accelerationists in the administration who crave this over slow decline.

Putin Adviser Alleges US Will Use Stablecoins to Address Debt #1214800

Not a theory, Trump told you in 2024, Bessent, Lutnick, and Miran have been building it out

Dollars are debt, banks hold debt and issue dollars against it.

The banks have leverage limits and market limits set by globalists to protect their other franchises in other countries.

Along with allowing banks higher leverage, and exporting dollars via stables, more of that debt can be monetized into dollars... Dollars that can buy Bitcoin.

Bitcoin then soaks up the excess dollars in the economy such that they don't inflate things like housing and energy.

This slowly turns the dollars from from a liability to an asset and saves the US from the Triffin Dilemma.

This is why the national security apparatus created Bitcoin, a transparent battery for dollars and global trade that can insulate the US during a transition away from globalist monetary policy.

I can see them trying to push USD around the world through global platforms like Meta and X. Don't think they'll make much of a dent in the $37T of debt though.

Its not so much dissolving debt as maintaining demand for USTs are global demand declines. Stablecoin issuers are required to hold USTs and so they create a huge potential demand. USTs also give USD digital payments speed and efficiency as the traditional SWIFT payments network struggles to compete with new protocols like Chinas mBridge and CIPS. Stablecoins are a quasi CBDC but in PPP form. Trump associates are positioned to make huge profits while the stablecoins potentially enable USA to remain solvent a bit longer than it otherwise would.

To understand more check this out- https://cryptohayes.substack.com/p/buffalo-bill