0 sats \ 3 replies \ @Undisciplined OP 13 Aug \ parent \ on: Tether's Circle of Death econ
I'm curious if you expect to see financial regulations, at some point, that will require large public funds (like pensions or university endowments) to hold some minimum amount of treasuries. That seems like an obvious place to look to temporarily prop up this debt situation.
I am not sure if we will see regulation to require it so to speak. Currently a ton of retirement funds hold these already and continue to purchase them. They are the target funds that people will by or that their 401k automatically puts money into for when you target to retire.
Its my belief that that already serves to prop it up as it is. Stablecoins are just another avenue to find a place that is hungry for them. It will be interesting though that as the working force shrinks how it will affect US bonds because there might not be as much internal demand if that makes sense.
reply
That makes sense.
reply
There was also the rush last year for I bonds in October or November I think because they would pay out a minimum of I want to say 4% or so no matter if the Fed slashed it down to zero again or not. That created a Treasury surge for sure I remember reading the website crashed because of the demand.
reply