“Reasonable chance” of pushing through legislation creating a Tether-style stablecoin for the USG. So: monetizing the debt by systematically buying T-bills! Straight from the playbook of the French “assignats” of the 1790s, which lead to hyperinflation.

Crazy to see this discussed on Capitol Hill.

Agreed.

*stablecoin chatter intensifies*

There’s a limit to how many T-Bills a stable coin treasury can buy, and that’s directly linked to the size of BTC and crypto total market cap. Stables are the other side of the trade. But it’s big - stables could grow by a factor of 50x. Bigger than China’s past holdings.

I was on a panel with Congressman Byron Donalds who serves on Financial Services Committee We talked about stablecoin legislation and he mentioned: -> lack of demand for UST 🤯 -> ability of stablecoin legislation to create demand for UST Trojan Horse?

100%!

It’s inevitable. But rather than being issued directly by the USG, it will be issued by a small consortium of ‘trusted’ US banks — JPM, MS, BoA, etc. Also likely is that Elizabeth Warren will introduce this, in the name of protecting us all from the ‘bad actors’ behind the other stablecoins.