Re: This isn't good. I know what is happening, and it's very bad.

Crypto and Congress

The Senate just passed the GENIUS stablecoin bill on June 17th with shockingly little fanfare, in a rare bipartisan vote, 68-30.
https://www.cnbc.com/2025/06/17/genius-stablecoin-bill-crypto.html

The House is poised to vote on and expand it from July 14th to July 18th - "Crypto Week." It very much appears stablecoins have the vote here too:
https://www.mitrade.com/au/insights/news/live-news/article-3-954217-20250713

Why does this matter? Well, on the surface it "provides a framework for how various cryptocurrencies should be regulated by agencies like the SEC and CFTC". Blah, blah, blah, right? Big deal. (Yawn.) But it also does something else, too - it means crypto companies would then have the power to issue new currency, determine their own profit margins on that currency creation, and and algorithmically adjust money supply...independent of Federal Reserve policy. The crypto companies will have essentially privatized core central banking functions while maintaining the fiction that it's just "payments innovation".

On paper this doesn't matter. The GENIUS act bans issuers from offering direct yield or interest on payment stablecoins to entice people to use their currency...though the issuers - the stablecoin companies - then get to pocket that interest. By legal decree. BUT while they are "prohibited from conditioning their payment stablecoin services on a customer's agreement to obtain another paid service from the issuer (or its affiliates)"...they can also offer rewards, merchant discounts, and platform benefits. So in other words, they can then use the interest profits to give customers similar bennies to credit card companies...and here's the kicker: on currency they themselves issue.

In other words, if you're still using boring old US dollars, you're probably losing money. You'll get better deals from the big stablecoin issuers, especially Tether and Circle.

Also in other words: Congress is about to give away a vast amount of their "power of the purse". To private crypto companies that can issue their own currency that will soon be backed by actual US dollars. Trump & the Fam are all about it, they all issued their own coins as a first order of business. Heck, even Melania got one, bless her.
https://www.coingecko.com/en/coins/melania-meme

Keep an eye on this theme. Everybody's paying attention to everything Trump, MAGA, and DOGE are breaking. What people are so outraged and discombobulated to notice is, the real action is happening well offstage...by the private companies that are systematically absorbing the functions of government left broken or dysfunctional in the rampage. Trump 47 swept into office backed by an entirely different constellation of interests than Trump 45. And these interests are hoovering up actual power everywhere at the US government's expense...and the social-media influencers we have cosplaying as Congresspeople seem utterly fine with giving it away.

Just thought I'd mention it. Now go on, and continue to indulge in the fantasy that we live in anything resembling a democracy anymore...and resume your bickering and arguing.

The brief history of stable coins and their charlatan founders ......

Tiggity®

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This isn't good. I know what is happening, and it's very bad.

Jul 15, 2025, 10:45 AM

Sure, the crypto fans will love this, but......

The main reason Congress is doing this legislation, is because they know what likely/possibly lies ahead. The US dollar could collapse, along with out debt. IF that were to ever happen, there must be something to fall back on. Traditionally, that's gold, but the problem with gold is we have far more dollars, imaginary and real, floating around, then there has ever been gold mined in all of human history, combined. Just our federal debt, alone, is more than all the Gold that exists, at market values.

I'm telling you right now, if the dollar collapses they will change the money, and crypto is a much more manageable way to go, because again we have more dollars than the dollar amount of all gold on Earth, EVEN AT $3k an ounce. We can't go back to the gold standard because we have to many dollars that exist.

The problem here, like with any currency, is stability comes from use. When a billion or more people use dollars, it creates a very value-stable platform on which to trade. But again, dollars are infinite, in theory. Labor isn't. With crypto, it will always be prone to volatility unless universal use and adoption can somehow be forced or coerced. My $50 bill in my wallet isn't going to go down to $30 in a single day, or up to $80 in a single day. It will take YEARS for that change to happen.

As it stands, crypto is basically a massive ponzi scheme. EVERYTHING is based on dollars. How many DOLLARS is this coin worth? Well, with those dollars being relatively stable, and no one using the coin in any meaningful amounts in trade, that leaves it wide open for speculation, and manipulation, which is what everyone from Trump to Hawk Tua to everyone else is doing with crypto. Suckers come in and lose, while those with enough knowledge and coins to manipulate things, make bank.

But yeah, they will replace the dollar with some sort of central bank backed crypto stablecoin, and force the use of it in transactions. This is how they will reset the currency, IF it collapses. And it's no surprise they're promoting stablecoins, as that will be pegged to some asset, gold, dollars, whatever, and can serve to reset costs to consumers should something very bad happen to the dollar (hyperinflation, debt default, etc).

But make no mistake, this is a very scary thing to even see happening, because it shows what is expected, or at least possibly anticipated. The dollar is down 10% on the year. That's a news-filled afternoon for bitcoin.

In the past, other banana republics tried similar measures. The currency becomes worthless, inflation rises, so they reset the currency, sometimes keeping the name, or changing the name, but they reset the currency to something once again workable. The problem is, when you try this trick, Mexico has done it several times, what happens is the problem that caused the original currency to collapse, eventually comes back and the process repeats itself.

As such, and as Congress is the source of our biggest financial follies, it is not surprising to see them, of all people, proposing this. Currency resets are often popular in legislative bodies that caused the original currency to collapse, so that legislative body wants to keep the gravy train rolling, they change the currency. They don't force themselves to adhere to a budget, or limit their terms in office, that's insane. Instead they reset the currency from one they ruined, to another that buys them time to ruin it again.