>>67040Related post with different views:
Since the end of the gold standard, the cycle of the monetary system has been the same. The U.S. issues dollars to finance its military expansion or to purchase products manufactured in other countries.
These surplus countries "recycle" the dollars by buying U.S. public bonds, and the dollars go to the banks, which then lend to individuals or companies.
Since public bonds can only be sold in a public debt market and the banks hold the dollars coming from abroad and the population's deposits, they impose the interest rate level on the State to continue financing the debt.
However, with the Genius Law, every stablecoin will have to be backed by deposits or public bonds, which will take reserves away from banks and shift them to Big Techs.
With an even better detail, through stablecoins, countries will be able to exchange dollars for stablecoins on a private network. Moreover, the reach of the deposits is not limited to those in the U.S., but extends to every citizen on the planet who wishes to use the stablecoin, impacting global bank deposits.
As stablecoins compete for funds that would typically be allocated to banks, they provide a backdoor to redirect bank deposits to Treasury debt, significantly reducing the power of banks.
Trump will finance American military spending and the cost of the state through global individual savings, respecting individuals' privacy and freedom.
If it works, it will be the greatest disintermediation operation in history