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But they do get to choose a number. Well, any number high enough. The constitution gives the federal government the authority to coin money and regulate the value thereof. If the coin enough money, and/or regulate its value low enough, they can set the price of bitcoin high enough above market price to essentially become the market. Everyone choosing to sell at the highest price they can get will sell to the feds for the newly coined money.

This would have massive consequences for those without bitcoin. Their savings and debts become worthless and they’ll have to start again in that new financial system.

BTC_P2P 5mo ago

By creating more USD the debt increases proportionally. So it doesn’t erase the debt, it adds to it. Bitcoin will increase in spot price as well but it won’t necessarily outpace mounting debt. That’s not choosing the spot price of bitcoin.

The debt has to continue to pile up no matter what and as it does, the purchasing power of each unit will decrease. Thus reducing debt burden on a real basis - this is what the money masters will continue. It’s the politically palatable route. An ancillary result of increasing debt/liquidity/money supply is Bitcoin (gold, stonks and real estate too) will nominally increase in value as well.

Debasement is the perfect route out. Normies think they’re getting rich. Government and their politically connected friends do get rich. Debt reduces on a real basis.

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Discussion

Dr. Bitcoin, MD 5mo ago

To take my argument to the extreme, the federal government can create more USD without creating more debt, legally at least. The federal government could literally mint a $37T coin and sell it to the Fed.

BTC_P2P 5mo ago

The Federal reserve doesn’t have 37,000,000,000,000 though. The Fed creates new money to buy treasuries and other assets, or in this hypothetical, a 37T coin. So that 37T is a liability, one that would destroy Fed credibility and cripple the USD fiat system. The liability wouldnt be on the M2 chart but it would still be new liquidity and would have extreme consequences for the system.

Dr. Bitcoin, MD 5mo ago

Federal reserve notes are the liability of the Fed. The $37T coin is the asset.

Totally agree this destroys credibility. Hence why it makes more sense to puff up asset prices instead.

BTC_P2P 5mo ago

They’ve been pumping asset prices for 54 years and liabilities have outgrown tax receipts by a substantial amount. The same will continue.

The fiat system is essentially a controlled demolition. The only question is how long can they keep the scam going.

Dr. Bitcoin, MD 5mo ago

I think they can continue until revolution. Our standard of living is already far off the 1850-1950 trend. When standard of living reverts to pre-1950, people will start again with government.

BTC_P2P 5mo ago

I think they can continue until they blow up their scam and there is a viable alternative. Complete currency collapse has happened many times in the past and it’ll happen again. Well on the way (to collapse and to having a viable global alternative) already.

Dr. Bitcoin, MD 5mo ago

I think we will see a 1930’s style depression…but all the poor people will be millionaires.

BTC_P2P 5mo ago