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Rereading nostr:npub1trr5r2nrpsk6xkjk5a7p6pfcryyt6yzsflwjmz6r7uj7lfkjxxtq78hdpu 's excellent expose on the Petrodollar recently and thinking: what would it seem like, if it seemed like (h/t nostr:npub1sfhflz2msx45rfzjyf5tyj0x35pv4qtq3hh4v2jf8nhrtl79cavsl2ymqt ) the petrodollar system was coming to an end, and the US knew it, and was embracing cryptodollars as a replacement for petrodollars, not by accident but by design.

I think it would look a lot like some of the stable coins we are seeing today, exporting our inflation out into the world through making stablecoins available in hundreds of countries where our banking system doesn't reach, and driving up a demand for US treasuries by stablecoin issuers, which pushes down US treasury yields, allows issuance of cheap debt, etc. Just like the petrodollar did.

Paul Ryan's recent comments show a clear understanding of this picture.

Chris 1y ago

Too little too late. Gross stablecoin issuance would have to go up 10x from here in a very very short period of time to have any meaningful impact on helping finance the US’s massive (and growing) fiscal deficits. And that’s just for ONE SINGLE year. NOT cumulative.

The current accumulated 100+ billion in stablecoin issuance sounds like a big number, but it is just a few weeks worth of US fiscal deficits that need financing.

If this is “their plan”, it’s a really short sighted one.

Just sayin. 🤷‍♂️

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Discussion

yan 1y ago

It’s a long term plan. The dollar isn’t collapsing tomorrow despite what people on nostr fantasize about lol. Bretton woods took a long time to play out, so did petrodollar, this is setting up the next 100 years.