Stablecoins, Political Tricks, and U.S. Sovereign Debt
The desperate search for new lenders to the U.S. Treasury
🎉 Happy Independence Day, everyone! 🎉
Welcome back to HardmoneyJim, your go-to hub where we dissect investment themes rooted in the intricate dance of money creation and its far-reaching consequences.
As you celebrate this glorious Fourth of July, let the revolution of sound money ignite today!
Today, we’re picking up where we left off in our June 10 discussion on the lengths to which governments will go when their coffers run dry. Unsurprisingly, the answer is: they engage in a relentless scramble for fresh sources of funding. After some introductory remarks on why I am an analyst and not an advocate, I’ll bring you up to speed on Treasury Secretary Scott Bessent’s bold initiative involving the sale of Treasuries to U.S. commercial banks.
Then, we’ll plunge into yet another emerging marketplace for government bonds—the realm of “stablecoins,” recently legitimized by the Senate's passing of the GENIUS Act. While these innovative monetary instruments might be a beneficial option for consumers, they present a veritable treasure trove for governments eager to broaden their investment base.
So, be a GENIUS! Give this piece a thumbs up, and don’t forget to share it with a friend! 🌟
Thanks for reading,
HardmoneyJim, July 4, 2025
Great episode, thank you. I didn't understand stablecoins prior to watching. Great explanation as to both what they are and why they matter.