A Russian official's claim that the US plans to devalue its $37 trillion debt using cryptocurrency, particularly stablecoins, is explored as a potential, albeit indirect, extension of historical US monetary policy.
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So, at the recent Eastern Economic Forum
in Russia, one of Vladimir Putin's
closest advisers said something that got
He said the United States is preparing
to use crypto and stable coins to
secretly devalue its entire $37 trillion debt.
He says the United States is plotting to
put that debt into a crypto cloud which
would reset the system. Basically
leaving the rest of the world just
holding the bag. Now this might sound
like some crazy theory, but a version of
this story has been said before by
billionaire CEO of Micro Strategy,
Michael Sailor. He actually advised
President Trump to quote, "Dump all the
US gold and buy Bitcoin.
>> Dump your gold. Sell all the US gold.
Buy Bitcoin. Then the trade is free
because you could buy 5 million Bitcoin
for the cost of the gold. You will
demonetize the entire gold asset class
and our enemies hold gold in their
banks. So their assets would go to zero.
Our assets would go to hundred trillion.
and we would control the world's reserve
capital network as well as the world's
reserve currency network.
>> The $37 trillion question though is is
how realistic is this? And would this
actually work? Because I think the
answer is it's not just going to work.
It's going to be inevitable and I think
it's going to happen. Not exactly in
that way, but that's what I'm going to
help explain in today's video. I want to
show you what Putin's adviser exactly
said and how the US will devalue its $37
trillion worth of debt with stable coins
and Bitcoin. It's a really interesting
story. So with that said, let's get into
it. Hi, my name is Hri Jick. Hope you're
doing well. Come for the finance and
stay for the Bitcoin. So, okay, first
question is who is the person that said
all this? Now his name is Anton Kobyakov
and he is the senior adviser to Russia's
president Vladimir Putin and he's been
in that job for over a decade. He
basically helps with Russia's messaging
at big events like the Eastern Economic
Forum. Now in his speech he said that
the US is trying to rewrite the rules of
the gold and crypto markets and that the
ultimate goal of the United States is to
push the whole world into what he called
the crypto cloud. And once the world is
there, he says it's going to move its
huge $37 trillion worth of national debt
into assets like stable coins and then
devalue it, which would essentially wipe
the slate clean. Okay, second question
then is what does it actually mean to
devalue the debt and how does that work?
So here goes. Imagine that the whole
world is just worth this $100 bill.
Let's say I borrow all of it, right?
Every single dollar. And now I owe and I
have to pay it back. The problem is
paying it back the hard way means I have
to pay it back and give it back, right?
But luckily, I have a special superpower
because I control the world reserve
currency. So instead of repaying it back
with the same $100 bill I just borrowed,
I could just create another $100 bill
out of thin air. Well, now the world
doesn't just have $100 in circulation
anymore. It now has $200, which is now
trying to buy all the same things in the
world cuz we didn't make more stuff. So
what happens next? The price of all
those things goes up, right? Things like
real estate, stocks, gold, especially
the things everybody wants, they all go
up. The groceries you used to pay a
dollar for now costs, too. Everything
becomes more expensive because again,
the supply of money doubled, but the
supply of stuff stayed the same. That's
inflation. Now, when I go to give you
back your $100, it looks like I just
repaid you back in full. But in reality,
I cheated because now your $100 bill
doesn't buy you the same amount of stuff
because I diluted the money. So it now
only buys you half as much. I devalued
the debt. Now, what most people don't
realize though is that this is literally
the oldest trick in the book. And in a
lot of ways, it's how the United States
has been paying for its debt this whole
time. Devaluing doesn't mean defaulting.
It doesn't mean not paying back. It
means to lower the real value of that
debt through inflation or currency
manipulation. And this has happened over
and over again throughout time after
World War II, during the inflationary
1970s, and even more recently after the
pandemic when we created a ton of new
money and then everything went up in
price, right? more dollars chasing the
same amount of stuff. So when Russia's
advisor says that the US might use
crypto to devalue its debt, he's not
telling us anything new, right? He's
describing something the US has been
doing for a really long time now. If you
take that same trick I just explained
and you push it out to the rest of the
world, that's what stable coins let you
do. And just to be clear, this isn't
literally exchanging the 37 trillion
into stable coins. It's using dollar
pegged stable coins backed by treasuries
to spread liabilities globally. When
those dollars are inflated, the loss
gets shared by anyone holding the
tokens, but we'll get into that later.
But also, speaking of integrating stable
coins into everyday life, did you know
that it's possible to earn what I think
will be the future world reserve asset
without ever buying it? That's what I've
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by Gemini, which is today's sponsor, and
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now. All opinions are my own and were
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Gemini, for sponsoring this segment. And
now, let's get back to it. But now,
here's arguably the most important thing
you'll ever understand about the
economy. And this is credit to Jeff
Booth for this one. Just remember this
all the time.
The natural state of the economy is
deflationary. So, what does that mean?
Well, it means if the amount of money in
the entire world stayed the same, like
let's say there was only ever this $100
bill in the entire world, right? And it
was always that amount. Over time, as
technology gets more efficient, as we
get better and better at making stuff,
the price of everything would naturally
go down. Things would get cheaper
because productivity goes up. But the
money supply stays the same. That is the
natural order of the universe. It's
decay. Things get cheaper over time. And
that's how it should be. But if you
think about it, that's not how the world
we live in actually works for some
reason. And that's because governments
can make more money. And when they do,
that's when you hear, "Oh, wait a
minute. gold, real estate, stocks,
Bitcoin, that's hit an all-time high.
But the reality is it's not really that
those assets are going up in price.
What's really happening is that the
dollar is going down cuz we're making
more of them. So, it now takes more of
them to buy the same thing. And when the
new money floods the system, all that
extra liquidity, as it's called, has to
find a home. It has to find a place to
go so that it doesn't become worth less.
So, it gets put into things like real
estate, stocks, gold, Bitcoin, which is
also why over the long run, those assets
look like they go up forever. In
reality, they're just holding their
purchasing power while the money that's
underneath all of that gets weaker and
weaker. So then the question is, what if
you can expand this superpower, right?
You could widen the same trick beyond
the US borders. That's where stable
coins come in. Okay, but hold on. If the
US can already devalue its debt with
regular inflation, what does it matter
if it can do the same with stable coins,
right? This is why Russia's adviser
thinks the US will actually do this. The
answer comes down to distribution and
control. You see, when the US inflates
the dollar, the economy starts to feel
the pain right away. We all see the
higher grocery bills, right? the more
expensive house prices, the energy costs
going up, potentially higher interest
rates to cool it down, those CPI and
consumer price index reports go up, and
then people get upset, right? But stable
coins, they change that equation because
stable coins park reserves in short-term
US treasuries. So, the demand for
dollars and treasuries can actually go
up as adoption grows, making the whole
thing kind of self-reinforcing.
Every time someone uses USDT or USDC
throughout the rest of the world,
they're basically holding a digital IOU
backed by US treasuries. That means they
are indirectly helping fund America's
debt without actually buying US
treasuries. Right? So if the US devalues
its debt through inflation, the burden
doesn't just hit American citizens, it
gets exported worldwide through the
stable coin system. So inflation then
becomes kind of a shared tax that stable
coin holders everywhere are forced to
pay because their digital dollars also
lose purchasing power at the same time.
Now, this is also technically true of
today's system because dollars are
everywhere throughout the world. But
this would become a much bigger market
that would also exist on people's
smartphones. And here's the other piece
of the puzzle. Stable coins can look
neutral because they could be created by
private companies, not just the
government. What that means is they
don't carry the same political baggage
that you know is associated with the
Federal Reserve or the Treasury. And
under the Genius Act, it says only
approved issuers like banks, trust
companies or non-bank firms can get
special approval. They can issue
regulated dollarbacked stable coins in
the United States. So if Apple or Meta
wanted to, they could create their own
currency like Metacoin, right? All they
got to do to get approval is just suck
up to the president a little, right?
>> How much are you spending uh would you
say over the next few years?
>> Um I mean I think it's probably going to
be something like
I don't know at least $600 billion. show
your loyalty, spend a little bit of
money, and that's why stable coins are
going to play such a huge role in the
devaluation of our debt. It's kind of
CBDC level of control without the CBDC
brand. Now, here's why the rest of the
world wants no part in any of this. And
we know it doesn't because of how much
gold the world has been buying. That's
what's happening to gold right now.
countries are like, "We don't want your
stable coins. Give us gold." Because it
was the agreed upon standard for
thousands of years. So, let's just go
back to that. But why don't they want
any part of this, right? It's because
even though stable coins are supposed to
be backed one to one by real US assets
like dollars or treasuries, in theory,
every single stable coin in circulation
should have a real dollar or bond
equivalent sitting right behind it. The
problem is there's no way for a person
or a foreign government to audit that
claim with 100% certainty.
Companies like Tether and Circle release
reports, but you have to trust the
issuer and the auditor, and they're all
mostly US-based. And when it comes to
trust, especially when it comes to
trillions of dollars, that's a big ask
between countries. Even if one day
blockchain technology makes it possible
to fully audit those reserves in real
time, that still doesn't really solve
the bigger problem, which is that the US
can always change the rules. Remember,
the government once promised that
dollars would always be redeemable for
gold. And then in 1971, Nixon just
rugpulls everyone, right? That link was
cut. So from the world's perspective,
that was kind of like the ultimate rule
change, right? That was the promise of
redemption and then just just kidding.
So a trust us token isn't really going
to cut it. There's nothing technical
that stops the US from doing the exact
same thing but this time with stable
coins. That's why there is so much
distrust in the world about moving to
this new digital system. So then the
next question is will the US actually do
this? Then now I actually think it's
more possible maybe even inevitable that
the US is already experimenting with
this idea just not in the way that we
hear about it. For example, Michael
Sailor, he was very public, right? He's
advised Donald Trump and his family that
America should have a Bitcoin strategic
reserve. His plan was if the US sold off
all its gold and bought Bitcoin, it
would crush gold prices. It would hurt
competing countries like China and
Russia. And at the same time, it would
send Bitcoin's price way up and
recapitalize America's balance sheet.
But in the end, that's not what ended up
happening. Instead, during Trump's
presidency, the idea of this US Bitcoin
Reserve, it ended up being just an idea
that was teased, but it was never fully
something that became real. The US said
it would never use taxpayer dollars to
buy any Bitcoin, and it really hasn't
been buying any, at least not that we
know of publicly. So, I don't think it's
going to happen the way Michael Sailor
was advising publicly would happen. But
this is where the private angle comes in
because while the government might not
be openly buying Bitcoin, there's a back
door. There's another way this could
happen behind the scenes. So, think
about Micro Strategy, right? This stock.
The company has basically become a
public Bitcoin proxy with Michael
Sailor. They've been buying Bitcoin
nonstop. They now hold hundreds of
thousands of bitcoins. So what if
instead of the US government buying
Bitcoin directly and then risking global
panic, what if it's easier to just let a
corporation do it first? That way it
doesn't look like some central bank
operation and no one's really paying
attention. And then later if Bitcoin
really does become a strategic asset,
the US government could take in and take
a partial stake in Micro Strategy the
same way it took 10% ownership in
companies like Intel. So this precedent
already exists. I mean, think about it.
Why would the US openly risk crashing
the gold market with a trillion dollar
Bitcoin purchase or or forced stable
coin roll out? Why would it sell its
gold if it if it still has any? Right?
It's way easier and much smarter just to
let private companies do the heavy
lifting first. Let them experiment and
then the US government could come in and
adopt what's already working. That's how
the US has always played the game.
Innovation starts privately and when it
becomes way too important to ignore, it
gets absorbed nationally. Right? This
way it's way more subtle, way more
gradual and it's kind of deniable until
the day it becomes official. But the
point I'm trying to make is that there's
a lot of ways that this could happen and
probably will happen. So, yes, the
Russian adviser is 100% correct in his
assumption that that's what the US will
most likely do at some point in the
future if it cares about solving its
national debt. But whatever ends up
happening, either way, I'd love to hear
your thoughts. Let me know down in the
comments below. I hope you have a
wonderful rest of your day. Smash the
like button. Subscribe if you haven't
already. I'd love to see you back here
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