USA Clearing Debt through Stablecoins
It recently caught my eye that Russia projected that the US might try to reset its debt obligations via the use of Stablecoins.
See video below
Now how would this work? - Was my first question.
In my mind, the idea of shedding your debt responsibility in any any possible manner would be recognized as a default - no matter how you package it or spin it.
I see two high level strategies that can be employed in scenarios where the US doesn’t expand GDP or resources.
Devaulued Wrapper
This approach would be if the US made an asset backed wrapper similar to USDT (Tether) - or just took over Tether.
The logical approch would be to create a digital crypto wrapper layer backed by assets. Later on, this new wrapper layer would give them the ability to change the exchange rate between the two.
The initial convertability might be 1:1 to draw as many people in (or mandate them to use it externally of the country - similar idea to internal/external split between Renmimbi and Yuan).
Then to change the convertability to 0.5 digital token. Effectively repricing their debt.
Debasement
The other approach is the age old way of printing more fiat and devaluing your debt obligation.
Either way, both approaches are seen as swindling and would be reacted to accordingly by all users. There is no clean way to shed your debt.
War
The only alternative path beyond debt repricing is to boost GDP through an AI revolution or confiscation of foreign assets via war.
The fiat system is a ponzi scheme that has to ever-expand or else it collapses.
NATO wants a world run by central bankers and elite and the main countries that they would want to step in line are Russia, Iran and lastly China.
As far as I can tell the AI GDP revolution hasn’t manifested yet - yes it has taken a lot of jobs but not to the extent of the GDP raise they would like.
My guess would be that they would be targeting Iran or Russia for war.
In most probable future scenarios - Personally owning commodities, Gold, Silver and having a Plan B make a lot of sense.