A top Putin advisor's claim that the US is using crypto to devalue its debt is not genuine concern. It is a calculated geopolitical move to publicly discredit the dollar while promoting the alternative gold-backed monetary system that Russia and China are actively building together.
A core function of money is to be the 'final extinguisher of debt.' However, fiat currency is created as debt, meaning every dollar is both an asset and a liability. This inherent contradiction makes the entire financial system fundamentally fragile.
Putin's history shows a reliable pattern: he appears cooperative and makes agreements, only to later act in his own self-interest. To predict his moves in conflicts like the Ukraine war, one must analyze this long-term behavioral pattern rather than his current statements or gestures.
By creating a regulatory framework that requires private stablecoins to be backed 1-to-1 by U.S. Treasuries, the government can prop up demand for its ever-increasing debt. This strategy is less about embracing financial innovation and more about extending the U.S. dollar's lifespan as the global reserve currency.
To extend the solvency of U.S. debt, create a one-to-one stablecoin backed by treasuries. This would grant global citizens, particularly in countries with unstable currencies, a direct way to save in a dollar-denominated asset. This new demand could lengthen the runway for U.S. fiscal policy.
While private crypto has scams, the true systemic risk is Central Bank Digital Currencies (CBDCs). Being programmable and centralized, they give governments the power to monitor, block, and control every citizen's transactions, creating an infrastructure for authoritarian control under the guise of progress.
In Russia, nominally private companies like Gazprom function as direct extensions of the state. Their international investments are designed not just for profit but to achieve geopolitical goals, creating a system where foreign policy, business interests, and the personal wealth of the ruling class are completely inseparable.
The US troop buildup near Venezuela isn't just about oil; it's a strategic move to counter China's growing economic influence in South America. China is establishing a gold-backed currency network, and the US is using military leverage on Venezuelan allies to disrupt this challenge to its hemispheric dominance.
In a novel attempt to delay a debt crisis, policymakers are pushing for regulations that would force stablecoin issuers to back their digital dollars one-to-one with U.S. Treasuries. This cleverly creates a new, captive international market for government debt, helping to prop up the system.
The word "inflation" is a deliberately implanted euphemism that makes monetary debasement sound like positive growth. The reality is that money is depreciating and its purchasing power is being stolen. Reframing it as "monetary depreciation" reveals the true, negative nature of the process and shifts public perception from a necessary evil to outright theft.
For stablecoin companies like Tether seeking legitimacy in the US market, the simplest path is to back their assets with US treasuries. This aligns their interests with the US government, turning a potential adversary into a welcome buyer of national debt, even if it means lower returns compared to riskier assets.