So, there's this thing with Representative Thomas Massie pushing the Federal Reserve Board Abolition Act (HR 8421) to totally scrap the Fed. He thinks that the Fed's handling of money, like the way it deals with debt, is what’s causing our currency to lose value and inflation to spike. This bill wants to completely take down the Federal Reserve System by getting rid of its Board of Governors and banks, plus wiping out the Federal Reserve Act of 1913.
Massie did a poll on X, and a whopping 86.6% of around 115,000 people said they’re down with ending the Fed. This bill pops up at a time when a lot of folks are worried about inflation in the U.S. and there’s a big back-and-forth about how the Federal Reserve should handle money matters.
I keep mulling over how the U.S. is gonna tackle the national debt issue, and it looks like the answer's been around for ages. Since every dollar is a Federal Reserve Note, if the Fed is gone, then technically, no one owes anyone anything. So, it’s like saying, thanks everyone, you’re free now. The U.S. could roll out a new sovereign dollar.
But here's the kicker half of that national debt is owed to American businesses, and they'll likely want their money back, while other countries get left empty-handed.
Honestly, if this plan isn't well thought out, then something’s up with Thomas Massie he must be really sick or maybe this is just some political theatrics.
I can't believe I haven't seen this topic before or this news nonetheless.
Although, I believe it is practically impossible to abolish the Federal Reserve - the USA needs it at this point, because it prints so much money to "stabilize" their economy, and what is the USA going to do without money printing power anyway?
Besides, the privatized entities who own the Federal Reserve would not allow that to happen anyway.
I agree, I think that if this had any prospect of coming to fruition, Thomas Massie would have suffered an accident by now.
And on the other hand is that changing to a system like the gold standard can not be done overnight with the mountain of debt that the USA has, which is based on the government issuing bonds, and the FED buys the bonds by printing money (in a simplified way).
We would have to see what Milei does in Argentina first, although he can rely on an external currency, which is the dollar to make the change. The USA could not.
Yes, I have also thought about this question for a long time. Many countries are getting rid of American treasuries, and crypto companies are forced to buy them. Probably more than half of the national debt already belongs to American companies and this debt cannot be cancelled. This will cause great harm to the US economy. The RWA market is still very small, but many assets there are backed by American treasuries or tokens of companies that own American treasuries.
I have another crazy thought.
I was the first to write about the etherium ecosystem when TVL was 2 million, but before me many people laughed and said it was another scam
https://bitcointalk.org/index.php?topic=5198245
Now look at this and it's not funny anymore.
https://defillama.com/chain/Ethereum
Let's take a look at this
https://app.rwa.xyz/
I'll save a screenshot.
So far, there are $2 billion worth of US treasuries in the ecosystem, but don't forget that many of the stablecoins in the pledge are 90% backed by these treasuries.
In the near future, we will see that the majority of coins are secured by treasuries, and no one will ever pay these debts. To be more precise, they will pay, but not all of them.
And here you don't need to be an ole prognosticator that some US debt will be cancelled this way and we will see a very big scam in cryptocurrency.
https://www.nasdaq.com/articles/donald-trump-says-crypto-could-help-pay-35-trillion-us-debt
Donald Trump Says Crypto Could Help Pay Off $35 Trillion U.S. Debt
Good idea when hamsters pay off US debts. It was very easy to do in cryptocurrency.
What Trump proves every day is that he has pure electoral interest in crypto and that he doesn't even care if the people around him who know about it explain to him how it works. Surely if he wins the Bitcoin will do better than if Kamala wins but I would not bet very hard.