Could Stable-Coins Crash The Economy?

in informationwar •  22 days ago


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Anyone who knows about central banking realizes it's a scam. Debt with interest can not be paid back. The American Dream is a pyramid scheme. However, it's a very good scam that hasn't caved in on itself, yet.

The Federal Reserve has a very good sense of how far they can push the limits of the economy. USD is a product, and the fed owns it. They control interest rates and they control inflation. The gold standard is dead. Dollars are backed by nothing but hopes and dreams, but mostly by war and Big Oil.


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A very tenuous situation has been created. Our economy is being sucked dry by the corporate elite, but because the corporate elite and banking elite are in bed together they are constantly bailing eachother out to stop our Titanic economy from sinking.

However, a shift in power may blow this house of cards over by the winds of greed. The corporate elite has been offered a seat at the big boy table via stable coins. These guys can't resist the opportunity to print their own currency.

Do corporations have any experience with regulating themselves and keeping the economy afloat so they can stay in power? No! Corporations are designed to make as much money as possible in the shortest period of time.

Each one of these companies pinky swears that they aren't going to print money out of thin air. Some will operate within the law. Some will pay to have the law bent. Some will break the law with the hope of escaping justice.

All three of these groups are going to find the means to leverage their position to leech this broken economy even more than they are now. This is not going to end well.

Debt creates debt. It's amazing that we've even been able to keep this charade going this long. They use the lessons of the past to become the masters of borrowed time. Rome has got nothing on us.

Every time Tether or another stable coin loses its peg you need to ask yourself why. If the answer is because the bank involved is a fractional reserve and they can't reclaim their loans fast enough to pay off their own debt, this is a problem. That's why I'm so bullish on Maker: the goverance coin of stable coin Dai backed by 300% Etherium. Compare that to the bank that backs Tether with 10% reserves. There is no contest. Crypto wins.

Bottom line: the next financial crisis won't be because of stable coins. Our lack of mainstream adoption ensures this. There are plenty of other ways the economy can tumble in the next year or two.

However, in ten years we might find ourselves in a situation where fiat becomes completely obliterated by the hands of these inexperienced corporations. Decentralization of power isn't always going to work out in everyone's favor.

These corporate toddlers will not be able to exersize the same restraint that the Fed has acquired over the decades. They will go mad with power and run the economy into the ground when crypto goes mainstream. Perhaps this will be a blessing to all of us here that see it coming in advance.

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This is so true! Keep spreading the word brother

So what happens when they go mad with crypto and printing even more wild. They crash all crypto? Maybe it will take a long time for crypto to go through the same as fiat as they end up owning most of the crypto...

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How could they crash crypto? If they buy it all up the price moons. If they sell it all they lost any position they had. They cannot do anything really.

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In OP related to printing more and more of it. But people will go away from those and stick with the ones that aren't crazy on inflation. They can't play the same game, as long as we don't let them, since we can back the ones that aren't being run is suspicious ways.

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Either way, if they keep printing more fake teether or fiat and use it to buy crypto then they take us to the moon, if then they sell it they lose any position they previously had, crypto isn't dead when a 10000 btc's buy a pizza, it's only cheap. Either way, they cannot win so to speak. Who cares if they control upwards of 75% of the network, they have the most to lose if they use that power to double spend or otherwise compromise the network, because as you remark, people won't put up with it, they will go away, which is why the FED won't go crazy with crypto, because they will lose all network integrity while they make crypto moon, but if someone like teether does it, they might make BTC go to 20k and bring up all alts in it's wake but when the game is up it will give people a chance to reevaluate exactly who cares about network integrity and who was for purely profit and or fraud.

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If they sell it all, market will crash to dumpster

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If they sell it all then it means people bought it all. They cannot win.

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This is especially true considering steem. Over 2/3 coins are powered up. There are only a few million coins on the exchanges and the demand of those few million coins is what determines the price of all the rest.

Someone could pump billions of dollars into steem and theyd only be able to buy a few million coins at best.

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You hit the nail in the coffin with this post! Can't agree more with you!

The American Dream is a pyramid scheme.

Some will break the law with the hope of escaping justice.

Some will break the law and just pay the fines because it's cost-effective. You raise some really good points... I've heard a lot of good things about MakerDao... I really need to look into it further...

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Yes, high end white collar crime is extremely profitable even if you get caught and there is no jail time.

Well, two pieces...

The corporations are not the young kids, they are the "corporate" arm of the FED. Just like MSM is the media arm of the FED. Corporations are going to rise up and take power from the govern-cements, or basically, govern-cements are going to be powerless to do anything about them.

Stable coins will be obliterated. You cannot be saved if you have one foot on the titanic and one foot in a lifeboat. Lets replace lifeboat with flying saucer that the open source projects built. So, you have one foot on the titanic, and one foot on a flying saucer. One is about to sink while the other is taking off. There will not be a nice smooth moment where you can step from one to the other. Such is the way with stable coins, they may be able to handle the crashing of the dollar, but they can't simultaneously handle the rocket surge in crypto prices.

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I've always been pretty skeptical of these "stable coins." To me, their nature means that they coincide with the fiat currency that so many of us want to get away from. Your post here certainly put this in perspective, thanks!