Stablecoins like Tether are backed by Treasury bonds, letting issuers earn yields while the same bonds get tokenized and deployed in crypto, effectively duplicating capital. The speaker claims this feedback loop inflates asset prices and is enabled by the "Genius Act," which legally allows banks to create stablecoins.
Simply put, the shadow government has found a new way to get rich behind our backs, and they stack the odds in their favor to the point where we have no chance unless we actually invest with them. This report exposes the fact that stablecoins are increasing liquidity in our system. Basically, they are able to put double the amount of money into risk-on assets like crypto and stocks to increase the price without anybody knowing, and they're doing it through government debt. If you took $100,000 and put it into Treasury stocks or whatever the case is, the government is forced to pay you back the initial amount plus, let's say hypothetically, an 8% yield. So you You profit $8,000 if you buy bonds, treasuries, which is an IOU from the United States government. Now the question is, how do they pay the interest on this IOU? They usually do it through 3 different ways. Number one, they do it by taxing the public. They do it by rolling the debt over, by not paying the debt and just rolling it over and printing new money. And then they do it by the Federal Reserve. When you give that $100 grand to the government, they actually spend it by paying government employees, funding the military. They spend the money on the United States. So when they're spending that money, what do you think happens to stock prices if the government is buying Apple computers, right? They're spending money in our entire economy. Then crypto and stocks start going up in value the more that the government spends. And they found a way to duplicate that through stablecoins. Look at this transparency report from Tether. They take your money. So when you give them $1,000, they take it and they put it in US Treasury bills and all a bunch of US debt instruments. And you get the stablecoin, but they get the yield from the US government as an IOU. So the government is really, really happy with Tether because they keep giving the government money to spend on America. See, this is just the old normal way. They found a way through stablecoins to duplicate the amount of money that goes into the United States government. Let me show you. So if a bank creates a stablecoin, which they just passed a law, the Genius Act, that allows a bank to legally create a stablecoin, they can take that money you put in their stablecoin and double it. They essentially first put it into government debt like we just said. All they need to do is hold the reserves 1 to 1. So if you give them $100, they take $100, they put it in a bank, they call it cash, but really it's just government debt. They say it's equivalent. And then they give you $100 worth of stablecoin. As you can see right there, it goes into government debt. And the bank gains a yield. But then you take that stablecoin and you could put it in DeFi. And right now there's something that's called tokenized debt. We've been talking about this for a while. There's tokenized debt, meaning the same debt can be purchased through DeFi as well. DeFi just means decentralized finance. It's crypto finance. The main point you got to understand is that $100K just got duplicated, one in DeFi, right, and one in government debt. But see, the thing is, in DeFi you could actually purchase government debt. That's a duplication of money flowing into the system. And look at how fast this DeFi government debt is growing. There is a lot of people purchasing government debt within DeFi. Before stablecoins, here's the top holders of US debt. US debt is so good that Japan has $1.1 trillion worth of US debt. We have trillions of dollars. Now all these people are holding it the old way. What do you think they're going to do when they figure out you could duplicate their yield? They can get double the amount of yield by just simply putting it in a stablecoin. They started figuring this out, and I want you to take a look at all the RWA, or real-world asset growth, in crypto in comparison to the green line, which is stablecoins. They all started just going crazy on stablecoins after this happened. Now, I'm running out of time, so follow for part 2. We're going to actually talk about interest rates and how they play a role in printing even more money in this feedback loop.
