Equity investors be Yellen, “Stablecoin, stablecoin, stablecoin; Circle, Circle, Circle.”
Why are they so bullish? Because The Big Bessent Cock (BBC) said:
if markets are forward looking and it is likely that the BBB will pass the house this week, why would BTC not catch a bid and front run the expected expansion in deficit spending coming down the line? i.e. why range till August?
Many thanks for sharing your knowledge. I’m able to fully understand about 60% of the content so far, but that’s enough for me to learn and grow. I really appreciate the effort you put into explaining these complex topics, at least for me.
If one day you could provide a light, simple explanation about when to enter and exit altcoins, that would be greatly appreciated.
True the TBTF 8 have over $6.8 trillion of deposits (actually $8.1 and the top 4 are $7.1). The deposits including a blend of interest and noninterest bearing accounts cost ~1.6%. Those deposits support $4 trillion in loans at ~6%. If the deposits were converted to stablecoin and they did not pay interest, they could make a similar return investing in treasuries at 4.2% instead of making loans at 6% but they would still make more in loans. Not making the loans would create negative leverage in the financial system as businesses would have less access to 6% capital which would reduce GDP and income tax revenues. The TBTF only have $80 billion of non-interest expense, there is no way they could save $20 billion in compliance costs even with a large shift to stablecoins. I could see a future where stablecoins replace currencies but the eventual outcome will not be a materially different world, more efficient, but depositors won't accept zero return on deposits, that will have to change.
A pure play on passing of ‘The Genius Act” is BMNR. CRCL will also do extremely well and still very very early to talk about being exit liquidity. Yes TGA will be rebuilt by a few hundred billion dampening liquidity but new deficit
if markets are forward looking and it is likely that the BBB will pass the house this week, why would BTC not catch a bid and front run the expected expansion in deficit spending coming down the line? i.e. why range till August?
Hi Arthur,
Many thanks for sharing your knowledge. I’m able to fully understand about 60% of the content so far, but that’s enough for me to learn and grow. I really appreciate the effort you put into explaining these complex topics, at least for me.
If one day you could provide a light, simple explanation about when to enter and exit altcoins, that would be greatly appreciated.
Keep bringing the light to us
Thanks!
True the TBTF 8 have over $6.8 trillion of deposits (actually $8.1 and the top 4 are $7.1). The deposits including a blend of interest and noninterest bearing accounts cost ~1.6%. Those deposits support $4 trillion in loans at ~6%. If the deposits were converted to stablecoin and they did not pay interest, they could make a similar return investing in treasuries at 4.2% instead of making loans at 6% but they would still make more in loans. Not making the loans would create negative leverage in the financial system as businesses would have less access to 6% capital which would reduce GDP and income tax revenues. The TBTF only have $80 billion of non-interest expense, there is no way they could save $20 billion in compliance costs even with a large shift to stablecoins. I could see a future where stablecoins replace currencies but the eventual outcome will not be a materially different world, more efficient, but depositors won't accept zero return on deposits, that will have to change.
This is one reason why Bessent is behind stables.
https://open.substack.com/pub/drpippa/p/controlled-demolition-warning-tokenization?r=9fifb&utm_medium=ios
A pure play on passing of ‘The Genius Act” is BMNR. CRCL will also do extremely well and still very very early to talk about being exit liquidity. Yes TGA will be rebuilt by a few hundred billion dampening liquidity but new deficit
spending more than offsets it.
Sir... last two charts: missing. FIX IT!
Thanks for the insights, btw. It's always a thrill to read from you.
Sweet baby Jesus ARTHUR, your giving the people gold
Hi Good Project
Thanks Arthur. Another cracking read, rich in signal and laced with wit.
Thank you