Is this even possible?
Honestly, I doubt it. Seems like just a tactic to twist people's views about Trump and his intentions. I'm not really a Trump supporter, but this theory about him just doesn't add up.
What do you guys think? Is Trump really using bitcoin and gold to decrease the US debt?
How are gold and stablecoins going to devalue the total debt of the US? I don't understand.
So if the world goes into the crypto cloud, how is that going to help the US debt? Or does he mean that when there is demand for stablecoins, it will affect the dollar and cause a demand for the dollar? I genuinely don't understand and would like to understand the POV of this claim.
I think this post should be in the "Economy" board because it's not bitcoin-related, but economy and stablecoins.
Claims you saw are not supported by official U.S. government policy. They are part of political argument from country that wants to challenge U.S. dollar global power. Idea that U.S. would use stablecoins or gold to devalue its debt is not standard economic concept. In reality recent laws in U.S like GENIUS Act are designed to do opposite they make sure stablecoins are backed by U.S. dollars and government debt which actually helps strengthen U.S. dollar position not weaken it I think.
The U.S. has a history of using gold to solve its economic problems. It deceived the world by claiming to uphold the gold standard while, in reality, printing unbacked currency.
A potential stablecoin act could allow the U.S. to pull off the same scheme again. This time, the issued tokens would be backed by U.S. government debt. However, since they wouldn't be a direct government liability, they could de-peg, just like what happened with Do Kwon's UST stablecoin from Terra (LUNA)
They have been already devaluing the dollar for a very long time. Each time you print any amount of dollars, you are devaluing all existing dollars. This claim is not that strong and is still made with inherent bias towards monetary inflation. The other side can't make political arguments against printing money, because then people in their own country will question this practice too.
Your idea is that the government is running an organized scam with the stablecoin? Life is already entertaining enough. Their stablecoin can't depeg like Do Kwon's UST, the stablecoins created by the stablecoins act are not algorithmic. They are backed by dollars. They can depeg in different ways, but not in the way that it happened to LUNA.
Yes.
Another shitpost by another idiot.
This is very wrong. I mean you posted misinformation. Dollar was backed by gold in the past but it ended in August 15, 1971. You can read more about it from the link:
https://www.history.com/this-day-in-history/april-20/fdr-takes-united-states-off-gold-standard
Stable coins are backed by United States dollar but not from the debt because people are buying it.
He may use gold, but I doubt about bitcoin, because they are not investing in it, while as for the bitcoin strategic reserve they had, we can't say for that now, because they are not into profit over fit to that extent, but must have earned a lot from the confiscated Bitcoin in the custody over the years, maybe this could have been what they are holding onto as being able to use in revaluating their debt or something else, because as it is now, everyone is just working on his own interests, while there is much to say about how gold is getting to all time high each time and too often this season.
Yep, I agree with you: it wouldn't make the dollar weaker, because it would be tied to the dollar's supremacy, imo.
Support for the dollar is a must going forward for the gov.
It is untrue and I am not a fan of either Trump or the US. but I am tired of such liars from Putin and many propagandas from the Russia Federation.
Bitcoin does not have that power and even if Trump and the US want to devalue their national debt, Bitcoin is not able to help them achieving this. Let's deal with their national debt by doing many systematic and national policies to fix their country's problems. They can not hope that Bitcoin will fix many things for them including systematic and national issues.
By the way let's check the US national debt.
https://www.usdebtclock.org/
It could but I don't think it is likely.
This is in line with a conspiracy theory I heard recently, according to which Bitcoin was created by the US, the CIA or some similar organisation. So, Satoshi would be the CIA or something. I don't believe it. If more information comes to light in the future that points in that direction, I'll consider changing my mind, but for now, no.
It's quite unreasonable to invite Gavin to CIA if Satoshi Nakamoto is a CIA.
Gavin will visit the CIA.
If Bitcoin was created by CIA, the US. would lead the Bitcoin mining industry and did not give China many years for dominating Bitcoin mining industry. It is a theory that can be interesting with many people but I see it lacks of enough evidence and logic.
I do think it's a bit far-fetched but it really doesn't help that US has precedence in this regard. As long as Exec Orders can be signed to do something as innocuous-seeming as forced gold buybacks and revaluations (already done as articles are pointing out), actually last done by the Dutch bank a couple of years back, who is to say there can't be a repeat, in different circumstances, different assets, different magnitudes?
I don't know about stablecoin but one of the ways the USA can achieve this is by buying Bitcoin like Tump proposed (Bitcoin strategy reserve). Let's say they buy 500,000 BTC at $112,000 and hold it for a longer period of time. When the value of the Bitcoin has appreciated, for example when it gets to $1,000,000 per Bitcoin, they'll sell it and use the money to clear off their debts.
I'd like to think that Trump is some super (evil) genius that has somehow fooled everyone that he is an incompetent, corrupt and selfish old man but in reality he is destroying the American economy and trust between nations for this sort of reason. Unfortunately I highly doubt this is the case and we need to take him at face value, he's a populist that will read polls to and regurgitate whatever rage is currently driving public opinion in order to manipulate his way into power, he is a master politician in that sense - but these people are often the ugliest "leaders" who use division and hate to rile peoples emotions, rather than actually fixing any important issues. He's purely using his time now for self enrichment, in between golf course trips that is.
tricky dick nixon started the devaluation of the dollar. he took the usa 🇺🇸 off the gold standard. cut the taxes for the rich and grew the deficit quicker if you look at the charts for the us deficit they just moon once nixon got in. the dollar has suffered huge shrinkage since 1970.
Stablecoins are now forced by legislation to buy US treasury bills. So yeah, stablecoins are buying us debt.
This can help US a little bit, but wont solve the debt problem
Speaking of Treasury bills, does it really solve any issue?
I mean, treasury bills are like debts the governments take from investors, and if you take a debt to pay back, you have to invest the money, make a profit, keep the profit for yourself and pay back the debt you took. So, if the government takes on this debt and, in its usual fashion, spends it (instead of investing it), how will it pay back? They will either pay back from other revenues like taxes, or they will pay from money borrowed. They can also pay from newly issued T-bills. So does this solve anything about the total national debt, or does it make it worse?
Just like you, I do not believe this bogus claim to be true, they are mere political exercise just to add some distractions. Assuming there even such attempt, I'm wondering how they will cancel trillions of dollar debt through this method. Trump may not be a saint but these accusations are baseless and coming from someone associated to Putin, I don't think it should be true since the claim is against the US.