Originally Posted by
Tellafriend
at this point in life i am becoming more content with just owning the pipes it all flows through and collecting a sizeable fee for the privilege.
with that said, however, i am earnestly trying to consume as much as i can about stable coins as i am (so far) able to make sense of them and hopefully their utility. can send you a link to some good reading/watching which provoked my interest if the mood strikes you.
Full send.
There is no play in my opinion except on the bond side.
Try this on. Dollar declines beyond target and .gov issues CBDC. Where are stablecoins then?
Stablecoins could serve as great marketing gimmicks.
As an aside.
I think the Fed is going to cancel paying interest (currently 4.3%) on reserves from banks. Ted Cruz is floating a proposal.
At issue is the central bank’s practice of paying interest to commercial banks on the reserve balances they deposit at the Federal Reserve. Sen. Ted Cruz (R., Texas) tried to launch a debate about this earlier in June when he suggested that if Congress barred these interest payments in its budget bill, it would save the government $1 trillion over 10
It’s not the financial saving - it’s the trillions of depositories that will leave the fed and find a home in Treasuries thus shoring up bonds and lowering interest rates (or so the thinking goes).
We didn’t pay interest on reserves held at the Fed until the housing crisis. It kept interest rates from going negative. Banks could be guaranteed a fine zero risk return - a subsidy from the government thet kept rates higher. We don’t need that anymore.
Who could ever object to the Cruz bill? Except the banks maybe.
Every scheme is being examined including stable coins backed by the dollar (a misnomer: they are backed by treasuries). Again creating new treasury buyers.
As gamblers short bonds (at least philosophically) this all is in your and my wheelhouse
I just tried Groman and he refuses to speak English these days. So annoying.
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