-
@ Marc
2025-05-21 13:53:36
The United States has a 36 trillion dollar problem and is on track for what Lawrence Leopard calls, "The Big Print."
The title of his book is timely now that the White House website is dubbing the new spending bill, "The One, *Big* Beautiful Bill, but here we are.
What do stablecoins have to do with this?
Well, the money printers don't actually go brrrrrr.
Fiat is created by loans.
Every time a bank conjures a home loan out of thin air, the money supply increases. Every government issued bond is new money. If the bonds are held by other sovereign nations, we would not expect these bonds to raise prices. The newly printed money would stay in government coffers and not circulate into the economy. That's the way it was before the GFC, but countries stopped buying these money printer go brrrrrr bucks.
There's a new buyer in town, USD stablecoins. They're faster than actual USD transfered over bank wires, ACH, and Western Union. That is convinient, but also increases velocity. These stable cuck bucks make their way into the global economy instead of government coffers. This increases the money supply. Stablecoins are essentially a sly, round-about way of monetizing the debt.
That's how they "dillute purchasing power."
Step 1: ~~Big print~~ The One Big, Beautiful Bill
Step 2: Monetize the debt with stablecoins exported to the world. This is where thihgs are a bit different from previous historical examples. The Weimar Republic could only print cuck bucks domestically because they couldn't send money electronically.
I think the US Republic plan is to export inflation via stablecoins. This will expand the monetary supply in countries with terrible money. Citizens experiencing hyperinflation will make a run for borders with better money. That's what's been happening, and now they are being rounded up. I don't know what effect the the recent court decisions will have on that plan, and I don't know much about immigration, so I won't speculate. Back to the 36 trillion dollar problem.
Enter tarrifs. Inflation is a hidden tax, but stablecoins pass that hidden tax onto poor countries. To pay off the debt, the plan seems to be:
1. Export inflation via stablecoins.
2. Import revenue via tarrifs.
3. Increase prices will be due to taxes imposed on exported inflation.
Tarrifs are an explicit tax, not hidden. Leopard thinks the US will see 100% inflation for a couple years. This is how I think that happens. It won't look like inflation, but it's a sly, round-about way of exporting inflation and stopping free trade. A rose by any other name smells the same. The dollar will be dilluted.
https://blossom.primal.net/09f75a25411e00de70a2e40600b4218c95fabe48d451b80174b94b9c9fc9ba77.png