Art Blakey

It gives the savages in DC a bit of control which they’ve never had. No one knew exactly how Bretton Woods was actually going to work. There were a lot of unknowns, one of which was the birth of a multi trillion offshore dollar network that falls under no flag or jurisdiction.

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Disappointed because he has changed his position.

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I think he flipped on btc because someone explained to him how it can be used during financial repression. If you read between the lines on what he, Bessent, and others in the admin have said, plus the Genius and Clarity Acts you can see the direction we're headed.

A stablecoin is just a digital Eurodollar and they clearly want to gain control of the Eurodollar market. The Fed and Treasury have wanting to seize control of that from London for decades. LIBOR to SOFI was step one. The substitution of stablecoins approved and regulated by DC for traditional Eurodollars is step 2. What backs a stablecoin? T-bills. The Eurodollar market, on a deposits to deposits basis is estimated at 13-16T. Substitute Eurodollars for stablecoins and you don't need to worry about who's going to keep buying the long end of the yield curve. You can refinance a lot of the debt at the short end.

Curtail long end supply and yields come down. There is a loose relationship between the btc market cap and stablecoin demand. When btc rips, especially with institutional demand, stablecoin market caps swells because that's how big players enter.

This is getting long winded but there's more to it. I think they are going to push btc/ibit as a savings tech for ordinary folks. Save in btc, spend in tether/circle and they're going to push it worldwide. We're at the end of an 80 yr debt cycle and smaller fiat currencies are going to fail and those countries will get carrots if the dollarize (w/ stables). Failed monetary regimes that go Euro or RMB will get sticks.

Now, who holds the stablecoins you're going to spend? Your bank. Does your bank deserve to get 4+% on your money (remember they're backed by high yielding short term bills)? No. frick the banks, who likes them? Nobody. So what do you do if you're Bessent? You skew treasury issuance heavily towards bills and cut rates at the short end to a pittance, 60-70 bips. Presto, your interest expense just plummeted.

This is financial repression 101. Hold rates below nominal growth to inflate your debt away. Everyone holding dollars gets fricked. But...what is going to rip your face off during this inflation? Btc. If you stuff enough of that into pensions, insurance co balance sheets etc...you can conceivably inflate (grow according to Bessent) your way out of the hole while minimizing the riots, pitchforks and social unrest.

Could it work? Maybe. Is it the least bad option given the debt math? Probably. I think that's where they're headed.

I agree with you that he likes the shitcoin grifting aspect too, lol. He and his kids have made a fortune selling garbage to rubes. But the big picture of what Bessent is trying to do is the above imo.

Btc is up because it's time, also because $40T. Shitcoins are up because that's what degenerates buy when btc goes up.

Buybacks aren't really money printing. It's just swapping off the run USTs for new issuance with a net effect of temporarily slightly lower yields. Yields are down today more on the news that they're doing something than on the mechanics of the paltry buybacks which amounts to $4B in a $40T pool.

One step closer to overt yield curve control.

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What are the reasons behind japans economic situation? Seems like a race as disciplined and hard working as them wouldn't have problems.

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LINK

Read that^ book. The cliffnotes are the BOJ issued what was known as "window guidance" for decades after WW2. It was secret but it was responsible for their outstanding real economy growth rates. The BOJ basically issued quotas on bank lending towards industry they wanted to experience growth. It all went towards productive growth, real economy shite like cars, consumer electronics, appliances etc... until the '80s when they changed course and began to pressure banks to lend to speculative investments, primarily R/E and equities.

This fueled two of the biggest bubbles in history, both of which grenaded in spectacular fashion between '89 and '92. The BOJ then, paraphrasing Dr. Lacy Hunt here, tried one intervention after another which prolonged economic suffering for 30 years. If they had done nothing they would have fully recovered decades sooner.

Now their debt/gdp is over 250%, the BOJ owns over 50% of all JGBs, their demographics are fricked, and they import all their energy which, since Ukraine/Iran has them bent over a barrel. The yen is collapsing and their bond market is blowing up. Bessent is diligently applying duct tape and super glue to the seams but it will eventually bust and impact the dollar and treasuries since global sovereign debt markets are an interconnected and tangled Gordian Knot.

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There is no political solution to this scenario

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Forget politics, there's no math solution apart from financial repression.

The BOJ owns >50% of all JGBs.

$3500 is reasonable imo if you use a human attorney to draft it all. I did mine with Claude ($20/month), then hired an attorney and told him "an out of state lawyer put this together, could you look it over?"

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This should result in the end of the Federal Reserve Banking system, which was foretold.

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Or, hear me out, the Fed prints whatever is needed to make the banking system whole like they have every other time banks have gotten in trouble since 1913.

No. Austerity would blow out the deficit/gdp. Cap gains are the marginal driver of receipts in a highly financialized economy like ours. Austerity=tax receipts down, transfer payments up, deficit to gdp up.

There's only one way out, inflation. Bessent went on TV and told you so last Sunday. Trump told you when he rug pulled Doge. And Congress told you when they passed the tax bill last night.