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Trump's Second Term

Planigale said:
US budget deficit reaches $40 trillion; costing $1 trillion in interest a year. Roughly 1/7 of the federal budget. Trump is upset because the interest the US is having to pay on US debt is higher than Swiss debt. If the federal budget is cut to reduce the deficit (or at least stabilise it), the proportion of the budget needed to pay the interest rises.Current prediction is that interest will increase to $2trilllion by 2036, 25% of the federal budget.

One way that this is being serviced is that the US is selling short term treasury debt as the underlying security for stable coin. Tether which is one of the largest issuers of stable coin holds > $140 billion making it about the 18 largest holder of US debt in the world. Effectively these companies are 'printing' US dollars, increasing the money supply. This is why Trump is keen on promoting bitcoins etc.

The stable coin business model essentially means that one buys US treasury debt and effectively sells stable coins 1:1 so the cost is recouped and one earns the interest at minimal cost. So $100 billion of treasury bonds bought at effectively zero cost will earn around $4 billions a year in interest at current rates.
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there’s also questions about whether or not tether is minting more coins than the treasuries backing it. tether is overseas and not under us regulatory laws and has never been properly audited

usdt is the american stablecoin minted by tether, in much smaller amounts. there’s also not very good guidelines for stablecoins and the clarity act is currently in limbo. why would tether need an american version of its dollar based stablecoin if everything is above board, you may ask? that’s a good question
 
Planigale said:
That is why the plan is that the US will have to hold a supply of stable coin, just as it holds a supply of gold. it can the insist on paying for things with stable coin.

One of the 'advantages' of stable coin is it is trackable and includes a freeze and reallocate option. The stablecoin can be frozen at any point by the issuer, e.g. Tether, and can even be reallocated - effectively pickpocketing. This can be done at the whim of the issuer and requires no court order.

US stablecoin could effectively be like fairy gold, you think you are wealthy but then it has all melted away in the morning. Upset Trump and he can ask Tether to freeze or take back the stable coin in your account.
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this is essentially what happened to iran when it was charging for access to the strait. it was accepting bitcoin and tether, and millions in tether was then frozen
 
Planigale said:
That would certainly follow from some SCOTUS rulings. Recent rulings have emphasised executive power and diminished the ability of the legislature to control the executive, effectively destroying the balance of power. The problem is that this won't change when Trump goes. It will persist until a new SCOTUS 'changes' the interpretation of the constitution.
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The current SCOTUS will reverse their executive king interpretations if a Democrat becomes president.
 
TragicMonkey said:
The current SCOTUS will reverse their executive king interpretations if a Democrat becomes president.
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Maybe, maybe not.

For SCOTUS to make a ruling, it needs a case to be brought to them. The problem is, democrats have at least some ethics and competence, and may not engage in the type of shenanegans that would result in such a case.

Remember, the United states existed for centuries before the supreme court felt obligated to make a ruling about "can a president be prosecuted for crimes he committed in office". There were no relevant cases for the courts to rule on for decades upon decades (including having both republican and democratic candidates). It took one spectacularly corrupt president for them to even consider the question.

The SCOTUS won't reverse its decision because a democratic president won't TRY to act like a king, and they won't have any cases to rule on.
 
Resume said:
Bessent: "We've got a spike in oil prices today that I don't really understand"
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JFC, they're all ◊◊◊◊◊◊◊ gaslighting imbeciles.
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Not necessarily.

Gaslighting implies that you actually know what's going on but you are trying to mislead the other person.

Bessent could truly be so dumb that he truly doesn't know why gas prices have gone up.
 
Segnosaur said:
Not necessarily.

Gaslighting implies that you actually know what's going on but you are trying to mislead the other person.

Bessent could truly be so dumb that he truly doesn't know why gas prices have gone up.
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Oh he knows why gas prices spiked; this whole corrupt administration knows why they spiked, the ◊◊◊◊◊◊◊ war BIDEN!
 
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Jack by the hedge said:
Damn those pesky facts. I blame the messenger. Why won't the MSM just make up some encouraging numbers instead?
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"We're not gonna call 'em layoffs and firings anymore, we're just gonna call them 'unjobs!'. That almost sounds like funjobs amiright? Anyway the media is evil and negligent if they do not support this new terminology".
 
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