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50 sats \ 1 reply \ @nkmg1c_ventures 12h \ on: Theory that stablecoin issuance is an attempt to wipe out US debt econ
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
Exactly.
An increased money supply means there is more debt to pay interest on, and the only way to pay off that debt is by increasing the money supply further.
In a world with $100, if the $100 is debt (as fiat is) and the interest rate is positive, let's say 3%, $103 needs to be paid off after a year, and $103 can't be paid off if there is only $100 in existence.
Nothing stops this train.
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