Total Balance Sheet Dominance: A Bold Strategy for U.S. Economic Supremacy \ stacker news ~Politics_And

Overview / Premise:

The US should dramatically sell off all its Gold holdings and fully replace it with Bitcoin.

The goal of this initiative is to achieve complete worldwide Balance Sheet Supremacy. This is not a soft-power play, but rather a hard-power play. This would be the play to ensure US economic supremacy for next 100-200 years.

Steps / Points:

The US should announce it is immediately selling all 8,133.5 tons of gold that it currently holds. Further it should indicate that it plans to fund SpaceX to investigate the feasibility of asteroid mining. All such revenue from gold sales, will by law, be translated into Bitcoin purchases.
The US should explicitly announce that the goal of this venture is to officially demonetize gold. Pushing the price of gold down >80%. At the same time, its goal is to monetize BTC. The price of gold would be reduced to its industrial/aesthetic value (like that of Silver).
All such BTC should be held in perpetuity as a Balance Sheet asset by US Treasury. The goal should be to achieve at least 4M BTC (25% of Bitcoin). Such bitcoin would never be "sold", only utilized as a balance sheet item forever.
Likewise US Tax law would be changed to remove all capital gain taxes from BTC held for more than 12 months. BTC held for less than 12 months would be taxed at a flat 15%. Additionally, a "de minimis" exemption would be enacted for any transactions below $250, which would be tax-free regardless of the time held.
In addition, regulatory changes would be enacted to encourage Tether / USDC / etc stablecoin issuers to operate fully legal and regulated in US. They would be mandated to move to US mainland. They would be able to purchase debt issuance directly from US Treasury to use those bonds to underwrite their stablecoin issuance.
The goal of the above US Tax changes would be to encourage US business to also adopt BTC as a balance sheet item, thus removing the tax complexity
Further the goal would be in making stable-coins as the primary method for exporting dollars globally - sunsetting the previous "EuroDollars" process. US Banks would be able to directly accept USDT/USDC just like they do with ACH. US companies would be able to list stablecoins right next to "Visa Accepted Here" (in fact Visa would probably buy USDC or Tether).
Such a move would cause several global shockwaves:

BRICS would be destroyed overnight. All economic competitors would find that their respective gold holdings would be worthless and they would be forced to also adopt a Bitcoin Standard. This is a checkmate scenario.
Almost all foreign investments (ie. foreign land, real estate in Africa, China, etc) would lose all its monetary premium and that investment would also flow into Bitcoin. The US would capture these economic goods via the appreciation of BTC price. Effectively this turns all "african office buildings" into a positive US balance sheet item
Likewise, worldwide black-markets would also capitulate. Mexican drug cartels, prostitution rings in Vietnam, etc would also be forced to adopt Bitcoin causing all that economic activity to be indirectly referenced on-chain....again these previously uncaptured economic goods would become a boost to US balance sheet.
All these moves would create a dramatic increase in the price of Bitcoin. Perhaps 100-200x gains (10-20M per BTC). Since the US would hold 4M coins, this would translate to a ~100T balance sheet asset to the US benefit.
This massive asset on US Treasury books, would become the rationale for all further debt/currency issuance. As more debt/currency are issued, this will in turn cause the price of BTC to increase, thereby the held Bitcoin would act as a natural counterbalance and continuously reprice on the US balance sheet causing US to remain "solvent".
By promoting global use of stable-coins (and phasing out EuroDollars), the implicit goal would be to end all foreign currencies. There should be no more Euros, Pounds, Peso, Real, Renminbi, etc. There should only be USD stablecoins + BTC.
Long term, "The Fed" would no longer be strictly needed. As the US Treasury would be able to sell bonds directly to Tether and USDC and they would use that a basis for new currency issuance. With banks being able to custody BTC/stablecoins, there would be no strict functional need to "Federal Reserve". That entity would not need to be killed, rather it would naturally wither and shrink in importance.
The massive monetization of BTC would cause all other "cryptos" to collapse. In fact the entirety of "crypto market" would consolidate into just BTC + stablecoins. Whether or not "ETH" (or other smart contract players) would even remain would be inconsequential as they would be .01% of the market cap of BTC/stablecoins.

Conclusion:

These moves would cement BTC, USD stablecoins, and US Treasury as the primary economic engine for the next 100-200 years. This would enact a "true global currency" to officially emerge. Simultaneously this would solve the "debt trap" that modern governments find themselves in. In effect they are pulling a "soft landing" into a BTC-based system.

21 sats \ 0 replies \ @028559d218 14 Dec

This is some Michael Saylor ****. One hell of a 'speculative attack'. I love it LFG

21 sats \ 2 replies \ @Aardvark 14 Dec

Every country holds gold. You piss off literally every ally you have just to stick it to B.R.I.C.S. and every voter you have that holds gold.

Not a very likely scenario.

5 sats \ 0 replies \ @028559d218 14 Dec

'Piss off every voter' Since when did politicians care about pissing off people... once they are in office!? Who knows if this will ever happen (maybe so or maybe not) but its a possibility and it's cool

https://dailyhodl.com/2024/12/09/the-us-should-sell-its-gold-and-acquire-bitcoin-btc-says-microstrategys-michael-saylor-heres-why/

41 sats \ 0 replies \ @freetx OP 14 Dec

You piss off literally every ally you have just to stick it to B.R.I.C.S.

Very very true.

It would require a US leader with tremendous egomania to do it. One that would be so concerned with image that that he could be convinced of this via twitter.

21 sats \ 0 replies \ @jakoyoh629 14 Dec

bold is an understatement

21 sats \ 1 reply \ @denlillaapan 14 Dec

OK, I see some "hows" here but it doesn't take into account the mechanics of financial markets.

The U.S. gov trying to swap gold into bitcoin is for financial market technical reasons pretty impossible move:

if they openly announce it, gold price dumps and bitcoin shoots to moon **before ** they do acquire any;
if they surreptitiously do it, gold price still dumps and bitcoin still shoots to moon but in very chaotic and rumors-based/intransparent ways.

Either way, won't raise much; and will crash gold very fast.

(Fair enough, the U.S. holds its gold accounting-wise at the then-$42 per ounce, so there's a long way to fall before the U.S. itself "loses" money in an accounting sense.)

Checkmate talked about it here too: https://www.youtube.com/watch?v=Wvf6NV23rqw&ab_channel=WhatBitcoinDid

30 sats \ 0 replies \ @freetx OP 14 Dec

Very true. The real power here is the announcement. The announcement of the intention would simultaneously cause the crash Gold/boom in BTC.

Having said that, there is no longer any value to holding "heavy rocks", so they would need to be sold at whatever price the market is willing to absorb.

In a sense its even better for US to sell its gold at $150 per ounce as it makes real the demonetization strategy.

3 sats \ 0 replies \ @OT 14 Dec

Why would they do this when they can just confiscate Coinbase, Kraken and Bitfinex coins?

Also, what bitcoiner is going to give up their sats for gold?

0 sats \ 3 replies \ @SwapMarket 15 Dec

If they do want to sell gold for BTC, it would be stupid to announce it beforehand and move the prices. Mandate Tether to move to US soil? Are you 13 y.o.?

11 sats \ 2 replies \ @freetx OP 15 Dec

it would be stupid to announce it beforehand and move the prices

Normally this would be very true. However you might not be aware, but the gold held by US is by law valued only at $42.2222 per oz. Therefore anything above that is a bonus from accounting standpoint.

Thats not the main point, however the point is to destroy the gold market. Announcing that you intend to destroy the market is the entire point. Ideally the price should be driven down to $43/oz and stay there forever.

Mandate Tether to move to US soil? Are you 13 y.o.?

Such a law wouldn't single out Tether by name, however only mandate that US treasury can only sell bonds directly to entities that are headquartered under US jurisdiction. Tether would be fine to stay offshore and buy their bonds on 2nd hand market and pay the appropriate mark-up. USDC (Circle/Coinbase/etc) would have the advantage then and thus make more money.

Anyway, do you not think that Tether would love to be HQ-ed in US and protected by law?

0 sats \ 1 reply \ @SwapMarket 15 Dec

Destroy the market after you sell your stash, not before. Restricting foreign buyers will instantly bankrupt USA.

11 sats \ 0 replies \ @freetx OP 15 Dec

Restricting foreign buyers will instantly bankrupt USA.

Not restricting in general. For stablecoin providers!

0 sats \ 0 replies \ @Solomonsatoshi 15 Dec

Without the debt rent and seigniorage the USA gets from the USD the USA would be broke.

0 sats \ 0 replies \ @DeltaClimbs 14 Dec

Stopped reading because you're retarded.

Gold hasn't been a player in money for a long time. Equities and real estate are, and the US has the dominant position in those.