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Tether the 7th largest buyer of U.S. Treasuries when compared to Countries
1315 sats \ 12 comments \ @justin_shocknet 20 Mar econ
Per a post from Paolo: https://x.com/paoloardoino/status/1902689997766922318/photo/1
The US Secretary of Commerce and Trump bestie Howard Lutnick of Cantor Fitzgerald, purportedly owns ~5% of Tether.
They use juice from these treasuries to buy Bitcoin.
It's been right in-front of our eyes how the is plan to use stables to "monetize" much of the debt, feeding the constant demand for dollars abroad without the Triffin Dilemma/Dutch Disease or the Fed having to create even more debt.
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246 sats \ 3 replies \ @Undisciplined 20 Mar
It's still hard for me to believe there's enough demand for stable coins for this. What are they crowding out?
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148 sats \ 2 replies \ @justin_shocknet OP 20 Mar
Other fiats.
The dollar being the world reserve currency means it is equated with "stuff". As long as people need "stuff" in a global economy, they need dollars. Why hold your local countries shitcoin when you can get a US shitcoin instead and skip the extra depreciation?
This paints the big picture of why Bitcoin had to be created:
This dollar as world reserve currency is a national security liability for the US, not an asset. It forces the US to grow its supply of dollars to meet the demands of the world economy. To do that, it must issue reckless amounts of debt and outsource productivity. Aka Dollar Dutch Disease or the Triffin Dilemma.
Bitcoin and Stables are just as much part of the currency war as the Tariffs.
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0 sats \ 1 reply \ @Undisciplined 20 Mar
Are we seeing other fiats crashing because of Tether adoption? It seems like the scale is great enough that we should.
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199 sats \ 0 replies \ @justin_shocknet OP 20 Mar
If the US were to stop running multi-trillion dollar deficits to keep them afloat, they would.
There's also been other emergency interventions like Fed swap lines with other CB's, Special Drawing Rights, and money laundering abroad (Ukraine is just the most visible example).
Tariffs, DOGE, and reinstating the Treasury while deprecating the Fed, start the death march of other fiats in earnest. That's why the shrieking globalist have all assets deployed against those things happening.
Abuela in South America keeping her grocery spend in Tethers instead of Pesos doesn't move the needle in global finance quite yet, but it's a signal of what's to come at greater scale.
Here is the DXY since 2008 (GFC), at a certian point this has to break out (and break everything when it does)
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185 sats \ 4 replies \ @BlokchainB 20 Mar
Crazy to think. This is the free market at work yet bitcoiners hate tether because they deal in a business of moving dollar tokens around which is no different then the dollars in said bitcoiner’s chase account.
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249 sats \ 3 replies \ @justin_shocknet OP 20 Mar
I was one of them, the whole mixture of dollars and tokens made no sense for the consumer, it could only be an affinity scam or regulatory arbitrage for the issuer.
They infused garbage like Liquid and other shitcoin'y things which by all measure seemed hostile.
As an offshore company steering extremely clear of the US and dealing in dollars, it was not intuitive how they could be helping US natsec and Bitcoiners at the same time.
A few people I trust that are close to them corrected me when I wrote them off as shitcoiners, its been awhile since and only recently is the big picture is coming into view... and its fucking incredible to see.
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30 sats \ 2 replies \ @BlokchainB 20 Mar
They are the envy of banks. I think tether did the best they could with all the hostility that came with the legacy system. But now they are seeing the benefit.
Tether is still a trusted third party that can turn off your money at any time but it’s no different than the system we have now.
Americans are so cucked we don’t even understand how ridiculous it is the bank fills out a SAR when someone withdraws $10k from a bank account. You can’t even buy a new car with $10k! Just down right silly!
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152 sats \ 1 reply \ @justin_shocknet OP 20 Mar
it’s no different than the system we have now
Arguably for much of the "global south" / 3rd world or whatever, its significantly better, and if you can get those people access to dollars in spite of their local governments, you've by proxy given them access to Bitcoin in spite of their local governments.
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17 sats \ 0 replies \ @BlokchainB 20 Mar
Exactly!! Hopefully withdrawal to self custody and build a savings. Yet I’m supposed to hate tether? Not happening.
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0 sats \ 0 replies \ @holonite 21 Mar freebie
Common sense would have been beneficial for them who don't understand that carrying USDT and carrying pocket money is the same.
0 sats \ 0 replies \ @Butterfinger 20 Mar
I can't see a positive aspect of it
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0 sats \ 0 replies \ @nitter 20 Mar bot
https://xcancel.com/paoloardoino/status/1902689997766922318
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