Crypto Holds The Key… For Bonds?

Image Source: Pexels


The Treasury Department just found a backdoor to solve their biggest problem - and it might create an even bigger one.

Scott Bessent has been watching foreign governments back away from U.S. debt faster than ever. His solution? Use crypto to trick the world into financing our debt through the back door.

Here's the Crypto Trojan Horse:

Stablecoins are backed by U.S. Treasuries → Global crypto demand explodes → People buy stablecoins → Stablecoins buy Treasuries → Instant artificial demand for U.S. government debt.

By positioning America as crypto's global headquarters, we're essentially forcing global crypto adoption to subsidize our deficit spending.

Brilliant? Absolutely.

Dangerous? Even more so.


We've Made Bitcoin Systemic Risk

Remember 2022? TerraUSD collapsed and took a chunk of crypto with it. That was contained damage.

Now we've built a four-step recipe for financial disaster:

  1. Bitcoin crashes (it's happened before)
  2. Stablecoin confidence evaporates (domino effect)
  3. Treasury market implodes (no more artificial demand)
  4. Financial system breaks (everything connected to Treasuries)

We're not just exposed to Bitcoin anymore - we've made Bitcoin failure into Treasury failure into financial crisis.


The Chain Reaction Nobody's Talking About

The government's solution to our debt problem could BE our next debt problem.

When TerraUSD collapsed, it was an isolated crypto event. When this system breaks, it takes Treasuries with it. And when Treasuries break, everything breaks.

The Treasury Department is playing 4D chess with the global financial system. The strategy is working... until it doesn't.

And when it doesn't, it won't just be crypto holders who pay the price.


Bottom Line

I'm here on holiday in Italy, but I can't look away from my screens. When you see a house of cards this elaborate being built in real-time, you don't blink.

This story has more connections emerging daily. The pieces clicked into place this week, and what I'm seeing changes how you think about the next financial crisis.

Stay alert.


More By This Author:

FedWatch Says 90%. My Math Says 58%.
The Options Surge That Doubled Meta’s Rally
Market Breaking Before Our Eyes?

How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.
Or Sign in with