Many people joke that they want to use inflation to dilute Trump’s $4 trillion debt.
But the core issue isn’t repayment—it’s rolling debt.
The GENIUS Act forces stablecoin reserves to buy only short-term U.S. Treasuries maturing within 93 days.
Overseas capital exchanges into USDT, and the funds automatically cycle to buy T-bills—becoming an endless buyer of U.S. Treasuries.
In short: long-term bonds aren’t afraid of inflation, but short-term bonds fear it the most.
When you refinance loans due in three months, the interest rate rises directly with inflation.
As cheap Japanese funding exits, AI giants aggressively issue debt to grab capital.
Crypto originally wanted to flee the U.S. dollar, but now its biggest track is instead helping the U.S. globally distribute dollars and absorb Treasuries.
What a highly ironic macro narrative.
$ETH
$SOL
But the core issue isn’t repayment—it’s rolling debt.
The GENIUS Act forces stablecoin reserves to buy only short-term U.S. Treasuries maturing within 93 days.
Overseas capital exchanges into USDT, and the funds automatically cycle to buy T-bills—becoming an endless buyer of U.S. Treasuries.
In short: long-term bonds aren’t afraid of inflation, but short-term bonds fear it the most.
When you refinance loans due in three months, the interest rate rises directly with inflation.
As cheap Japanese funding exits, AI giants aggressively issue debt to grab capital.
Crypto originally wanted to flee the U.S. dollar, but now its biggest track is instead helping the U.S. globally distribute dollars and absorb Treasuries.
What a highly ironic macro narrative.
$ETH
$SOL