The US devaluing the currency to escape the debt doesn’t make sense to me. I don’t know how to explain it. But I really don’t think that works.
Because the more they print, the larger the debt. So the ratio remains the same. nostr:note1md0rycxxzn9958erj4wutmwcrg7ssewxpjwcfk82ywc7dncyr2jqj48wjm
Wouldn't this be the play:
1. Public Announcement to citizens that their printing fiat to buy bitcoin
2. Immediately start printing fiat and buying bitcoin
3. That was all I had.
Yeah, but that doesn’t make the US debt smaller because the USD is now cheaper. Because the debt will increase at the exact same rate as printing.
I'm thinking they'll probably need to ditch the dollar and use bitcoin eventually. Maybe if they start early (and hard), the bitcoin price increases faster than the debt explodes. But I honestly have no idea how this thing will play out.
one angle is the global market value of the outstanding debt decreases in dollar terms since they mature in dollars. the debt holders get a bad deal. it takes more US dollars to service the debt before maturity so they just print more.
this scenario matters a lot in terms of interest rates, new debt cost and bid liquidity, FX, imports/exports, and many store of value asset classes.
Buy #Bitcoin.
