Treasury Secretary Bessent reveals plan to tackle soaring $38T debt using crypto currency

[Yo_Mama_Been_Loggin]

U.S. Treasury Secretary Scott Bessent has a solid plan to manage the country's soaring debt and it involves a growing reliance on money-market funds and stablecoins.

Speaking at the Treasury Market Conference, Bessent explained how the department is thinking about long-term borrowing, noting that the explosive rise of stablecoins and money-market funds will play a larger role in shaping future U.S. debt demand.

This marks the first time a Treasury Secretary has publicly positioned stablecoins as a future pillar of U.S. debt financing.

For context, a stablecoin is a cryptocurrency designed to keep its value pegged to the U.S. dollar — so it doesn’t swing in price like Bitcoin or other tokens. It’s meant to behave like digital cash, offering the speed of crypto with the stability of fiat.

https://finance.yahoo.com/news/treasury-secretary-bessent-reveals-plan-000521143.html

[John Coktosten]

1. Wow

This sounds like one of the dumbest (based on all of the known idiocy from this administration that I'm aware of) ideas I've ever heard of.

[Lovie777]

2. OH SHIT...............

there goes the dollar, fuck.

[fujiyamasan]

3. He may want to check the direction of bitcoin and the rest of crypto over the last week

And I definitely don’t think it has bottomed out. Crypto doesn’t behave much differently from any speculative and volatile tech stock and hasn’t for several years now.

It’s not really a hedge against anything. It’s just another asset that can be manipulated by large institutions. In the end we as taxpayers will be holding the bags while Trump and his cronies profit. That’s the most fucked I’m thing. The treasury is just another coffer to raid. We are so fucked.

[Diraven]

4. How does that help the debt?

Basically he's just saying stablecoins will be a new and easy way for the US to sell even more debt. And that reduces the debt how, exactly?

[Buddyzbuddy]

7. It doesn't. But it helps those at the top of the pyramid scheme to cash out

or exchange all of that make believe crap for something more tangible by temporarily giving it some legitimacy.
It's literally becoming the coin of the realm.

Way to destroy the American dollar you a*sholes.

[Johonny]

10. When we bail out stable coin collapse

It will certainly increase the debt

[CentralMass]

5. Another thieving conman.

[hunter]

6. It sounds like a Russian plot to destroy the U.S. economy.

Bessent is either in on it or he's an idiot.

Could be both.

[Wounded Bear]

8. So he wants to bubbleize the US Dollar?

That sounds like fun.

[kysrsoze]

9. Soooo... a ponzi scheme.

n/t

[Fiendish Thingy]

11. Now you can launder money and (maybe) reduce the US debt at the same time! Nt

[Fiendish Thingy]

12. Reminder: the law that enabled Bessent to do this was passed with the support of 16 Dem senators

Including Schiff, Padilla, Gillibrand, and Gallego, who received a $10 million “tip” from the crypto bros as a thank you.

[Norrrm]

13. If it is pegged to the dollar, just use the dollar. Don't add complexity.

[muriel_volestrangler]

15. This is the way to help money laundering

If you transfer dollars using banks, there are all those pesky reporting requirements that some banks follow. "Stablecoins" enable laundering, without the risk of a random cryptocurrency collapsing while you're dealing. And the requirement for them to hold US Treasuries means the US government can keep its borrowing costs down, while benefitting from the laundering.

[snot]

14. By all means; instead of fixing the underlying problems,

let's piggy-back Ponzi upon Ponzi!