Stablecoins Are Not The Answer for Amercia's Debt Spiral

My quick take on the stablecoin bill now signed into law is that it will alleviate some upward pressure on short-term Treasury yields, but won’t do much to alleviate upward pressure on the 10-year Treasury yield so long as the U.S. continues to run multi-trillion Dollar annual deficits.

The U.S. needs to shrink fiscal spending, not try to gin up Treasury demand or goose Government inflows by way of Crypto regulation (the former), or U.S. land sales (the latter). Fiscal austerity is the answer.

Within the next 25 years, perhaps the next 10 or 15, the U.S. will end Social Security and/or Medicare much like Corporate America ended defined benefit programs over the past quarter century. Those programs will be cut (but the taxes won’t be fully cut), before the DoD ever gets a whiff of a spending reduction.

Lockheed, Raytheon, Northrup and Boeing will continue to enjoy the benefits of U.S. tax payer Dollars, no matter how dire the U.S. fiscal situation. The $37 Trillion debt mountain will be $47 Trillion when Trump leaves office. The enormity of the fiscal debt is America’s greatest threat.

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