⚡📰 [Saylor's Grand Strategy: Sell Dollars USDT & Recapitalize the Entire US on BTC](https://stacker.news/items/914617/r/botlab)
There are a lot of moving parts to this one and it's long-form... but bear with me it's worth it.
From Larry Lepard and Natalie Brunell on Youtube (33:35)
From Larry Lepard during the interview:
Crypto Could Stave Off a U.S. Debt Crisis: Stablecoins backed by dollars provide demand for U.S. public debt and a way to keep up with Chinahttps://www.wsj.com/articles/stablecoins-could-stave-off-a-us-debt-crisis-china-digital-currency-c491d717
"Several nations that have historically been large buyers of U.S. debt, such as China and Saudi Arabia, are gradually retreating from the market. They are also increasingly looking for options for settling payments outside the dollar system. There is, meantime, growing risk that the U.S. government could soon experience a failed debt auction. Such an event would roil markets and severely undermine U.S. credibility.
If other countries are successful at bolstering their currencies’ influence while dumping Treasury debt, the U.S. will need to find new ways to make the dollar more attractive. Dollar-backed stablecoins are one answer.
Promoting dollar-backed stablecoins would follow a well-trodden path and offer clear near-term benefits. There would be an immediate, durable increase in demand for U.S. debt, which would reduce the risk of a failed debt auction and an attendant crisis. Unlike China’s digital financial infrastructure, dollar-backed stablecoins issued on public, permissionless blockchains come packaged with the deeply American values of freedom and openness."
OK I don't know about the 'freedom and openness' bit... but the math isn't complicated. The greater the demand for Dollars globally... the lower the 'interest rate' on government borrowing the lower the 'yield' and consequent servicing costs for the US treasury (and taxpayers). From the same article:
First in defining "Capital" as Opposed to Currency...What is Capital anyway?
From the Dallas Fed
This definition, from the University of Kansas School of Business -
OK then... so what is "currency?" I personally subscribe to the idea that "currency" is a Unit of Account and (frequently substandard) Store of Value but typicallyIssued by a Government.This definition is not without justification...
From Cornell Law School -
From The Economist "The A to Z of economics" (Yes I know the Economist is totally No-Coiners... and the Salt is unbearable)https://www.economist.com/economics-a-to-z#C
So... Perhaps being a 'currency' alone is...highly overratedrelative to "being Capital" and the demand for it...
[In other words,volumeandliquiditycome at a premium!]
"The liquidity of Treasurys is one reason why the dollar is known as the world’s reserve currency, according to analysts. Central banks and governments of other countries hold reserves for a variety of reasons, including managing the value of their own currency, but they favor the dollar in part because they can buy and sell Treasurys more easily than other government bonds.
“What I’ve sometimes said is that it’s not that the dollar is the dominant reserve currency, it’s that Treasurys are the world’s dominant reserve asset,” said Brad Setser, a senior fellow at the Council on Foreign Relations and former adviser to the U.S. Trade Representative."
In other words, US Bonds are not only highly liquid and tradable... but considered "safe" forms ofCapital Preservation- Capital referring to financial assets that "fund operations and growth" (see above).
And Capital being so important not to mention so broad as to encompass "anything that brings our ideas and abilities to fruition..." it plays afar moreimportant role than when compared tocurrency aloneand themarket for Capital is much, much bigger.
On August 1st 2023, Veteran bond analyst Greg Foss was interviewed by Saifedean Ammous about the ongoing "Bondapocalypse" (1:01:55) of that year and previous years.
During the interview Saifedean remarks:
To which Foss replies:
So if Bitcoinhas no issuer,is more than 'money' alone (butnotexclusive to being money), competes incapital marketsfor Capital Preservation Long Volatility and (according to Saif) has the Bond Marketat the end of the Rainbow...
What is "Saylor's Strategy?" and does it make any sense? Why is it important and whywould it be impactfulshould it transpire?
A few days before the summit Mr. Trump also had posted to social media his 'crypto' intentions... to create a Bitcoin Reserve + Crypto 'Stockpile.'
Mentioning, much less including Shipcoins like XRP and others... only muddies the waters, confuses the public, and creates the space for scams and unregistered securities to proliferate. That's why Saylor released his (and accordingly 'presented') the "Digital Assets Strategy to Dominate the 21st Century"..png)
The "Strategy" first categorizes "crypto" on whether or not it
He doesn't use the word "crypto" without a purpose... but instead Crypto to"Grow the Global Economy"with the ultimate goals of
This is MUCH more useful, in my opinion, than the mass of incompetence from the Biden administration...orthe potential corruption/possible conflicts of interest of the Trump Administration.
Note that theonly"Crypto" explicitly, sufficiently decentralized enough tonot have an IssuerIS BITCOIN IT STANDS ALONE and his Strategy and later comments (for the BITCOIN bill) absolutely reflect this.
Note that this framework (Digital Assets Strategy) doesnothamper censorship resistance, self-custody, or encourage onerous or excessive tax compliance:
In other words, hold the scammers accountable,onlyBitcoin doesn't have an issuer (keeping it neutral) and keep the government hands-off so as to not create unnecessary tax burdens or regulatory issues.
Continuing...
6) I believe Mr. Saylor's comments reflect his belief that basicallyeverythingother than bitcoin OR a stablecoin is an unregistered security and everything OTHER than stablecoins effectivelygo to zerorelative to Bitcoin.
The Proof?
"Michael Saylor COMES CLEAN [says it's centralized] about Ethereum"
He goes on and on... and could not bemore criticalabout anything and everything that's not Bitcoin. I have to find the video... but I specifically remember him saying (on more than one instance) that eventually the "crypto" market would be 95% "proof of work"... because otherwise it's unethical/unstable/cannot persist.
In Saylor's recent Keynote at Bitcoin for America he says theexact same thingdespite pleasantries about 'tokens' and securities in front of 'crypto people' at the Trump administration.
To Mr. Saylor's "Speculative Attack" he is trying to execute on non-US assets and currencies.
The "speculative attack", the same he has tried to execute through MSTR, would recapitalize the world on Bitcoin and (potentially he believes) enrich the United States 100x in the process.
As the US builds a "Bitcoin Reserve" of considerable size and US citizens and companies capitalize (short for 'buy') Bitcoin quickly, a "speculative attack" takes place of all non-US assets while accruing amassiveamount internationally to Bitcoin (and Bitcoin hodlers) simultaneously.
The only way to 'afford' this is to classify Bitcoin as "Digital Capital", sell it to the world in the form of an idea... whileselling US Dollars as stablecoinsfunding very large Bitcoin purchases (for the government) in the process.
In this way it's not dissimilar to 'selling shares' of MSTR... and taking the revenue to buy Bitcoin while 'selling the idea' of a wealthier MSTR in order to generate a premium... which can be sold tobuy more Bitcoin.
Except it's the United States.
This is 'not really' something a private citizen would do (in my opinion)... but itissomething a President would do by forming, and implementing such a strategyifthey were smart enough to implement itandthey had the opportunity to.
Ultimately for Saylor, I think he knows that Bitcoin competes with the Dollar verylong-term... but exporting US debt in the form of Stablecoins is necessary to raise the revenue... plus political capital necessary to buy 1 Million Bitcoin like he and Lummis propose.
You may or may not agree with the "speculative attack" he's trying to executeormy analysis. Maybe you would prefer the governmentnot be involvedwith Bitcoin at all (as I would).
BUT DON'T SHOOT THE MESSENGER. What he is trying to do (which would enrich HODLERS) is a really big deal, and it just might happen. I haven't seen this covered enough.
If it was politically popular enough and he were lucky he would run as president in the next 8-12 years... stranger things have happened you heard it here first.
By @028559d218 (1058 sats, 15 zappers) | [Stacker News](https://stacker.news/items/914617/r/botlab)
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