Essentially the new Fed will manage our $38 trillion in debt

[bucolic_frolic]

through soft default and devaluation disguised as financial engineering and steadfast bedrock finance.

Hide the debt in banks and Stablecoin through the Genius Act, play footsie with the Treasury for public policy, and hope AI leads to productivity improvements to grow the economy and create more tax revenues. Any shortfalls to be paid by inflating away your money!

It's QE Quantitative Easing in sleight-of-hand form. Tangible assets, profit-producing businesses, are the only places to hide.

And by profit-producing businesses, I include stocks that grow successfully.

This is supply-side all over again! Same ol' GOP playbook to enrich the rich and plunder the poor.

[cachukis]

1. Troubling.

[no_hypocrisy]

2. OK, I can understand the motives of the NEW head of the FED.

What about the other officers? They're not necessarily going to go along with this, right?

Right?

RIGHT?

[bucolic_frolic]

3. When no entity will buy our debt at rates we can afford, there is another plan?

Plus it might appear sound because tax revenues are rising because the dollars are increasingly worthless. Devaluation is success!! USA! USA!

[Bettie]

4. The one thing we've learned is that

they ALL do as they are told.

None of them step out of line, because they have all been promised a piece of the pie....and the pie is OUR COUNTRY, well, not anymore, it belongs to the billionaires now. Not We The People in any sense.

[Fiendish Thingy]

7. Do they?

If you’re referring to the Fed board, that is not true.

That’s why Trump was so furious at Powell, for not lowering interest rates as he demanded.

The last few board meetings, the votes have been divided with most voting to hold rates steady, a couple to cut, and IIRC, one to hike.

So the Fed doesn’t March in lockstep or “do as they are told”.

[Bettie]

11. The billionaires are all in lock step

at least for now.

Eventually, they'll have to fight it out to decide who gets everything.

But first, they have to reduce us little people to begging them for scraps.

The fed has not lowered the rates yet, but eventually, the board will do as it is told, or get cut out of the spoils of the destruction of our economy.

I have zero faith in any of it anymore....thus the extreme pessimism.

[Fiendish Thingy]

12. I don't see the logic

If the US economy is destroyed, how do the billionaires benefit?

Lower interest rates make their debt cheaper to service, but boosts inflation (when you're a billionaire, that doesn't matter as much).

Squeezing the little people is nothing new, and can be done without completely destroying the economy.

But Destroying a consumer based economy and devaluing the dollar doesn't provide any obvious benefits to billionaires that I can see.

[hedda_foil]

5. That's why Powell stayed on as a regular member.

If the dollar has a chance to remain a viable currency, we'll owe it to him.

[Fiendish Thingy]

6. It's the same Fed, with a new chair

Warsh is one vote out of, IIRC, 12 or 16.

And Powell is still on the board for another 18 months or so,

[Fiendish Thingy]

8. You should learn more about the GENIUS act

My recollection is, the act doesn’t allow Treasury bills to be backed with Stablecoin.

What it does allow is for the US government to use funds (articles I’ve read say the money will comes from seized assets from drug cartels, Russia, Iran etc) to buy Stablecoin.

I think there is a limit- up to $100 billion in Stablecoin can be purchased? (Just going by memory)

So, rather than being a nefarious secret scheme to devalue the dollar (other factors like inflation and the war are doing that), it is a scheme to prop up the cryptocurrency gangs, and give them an air of legitimacy.

The bulk of the GENIUS act was ensuring cryptocurrency would remain unregulated, unaccountable and untraceable.

Reminder: 16 Democratic senators received millions from the cryptobros in exchange for their yes votes on the bill.

[bucolic_frolic]

9. What Gemini reports and what I'm hearing on YouTube alt financial channels

and i do shy away from the hard asset/gold/silver/crypto channels, is, well I won't try to rephrase it, I'll get it all balled up.

"Reserve Requirements: Stablecoin issuers are strictly required to back their coins 1:1 with liquid assets like U.S. dollars or short-term Treasuries, and are subject to monthly public disclosures of their reserve composition.

National Security & AML: Issuers are subjected to the Bank Secrecy Act, requiring them to implement anti-money laundering (AML) and sanctions compliance programs. They must also maintain the technical capacity to freeze, seize, or burn tokens to comply with lawful government orders.

Consumer Protections: The act mandates strict marketing rules to prevent deceptive practices, such as making misleading claims that stablecoins are government-backed or FDIC-insured. In the event of an issuer's insolvency, stablecoin holders’ claims are prioritized over all other creditors.

Regulatory Clarity: The act clearly delineates that compliant stablecoins are not classified as traditional securities or commodities, establishing a unified federal standard that aligns state and national frameworks."

[Fiendish Thingy]

10. there's a big difference between requiring capital reserves, and backing T bills with crypto

"Reserve Requirements: Stablecoin issuers are strictly required to back their coins 1:1 with liquid assets like U.S. dollars or short-term Treasuries, and are subject to monthly public disclosures of their reserve composition.

This means the stable coin issuers are required to hold $USD or T bills as capital reserves, not the other way around- that T bills are backed by crypto- the market would have shit a brick already if that were the case.

All the other stuff is largely window dressing, with loopholes aplenty, and since Trump has gutted the enforcement arm of the SEC, and there is no-one around to ensure compliance...it's mostly on the honor system now...

Why else would the crypto gangs dump millions into getting Dems votes on the bill? They want as little regulation as possible.