By Angelo Giuliano
The United States has pulled off a financial scam so audacious it's hidden within the innocuous wording of the Genius Act. This isn't just cryptocurrency regulation—it's a deliberate heist, designed to offload America's staggering $37.5 trillion debt onto the world, prop up the faltering dollar, and cement Washington's grip on global finance without a shred of transparency. By transforming U.S. treasuries into tokenized IOUs disguised as "stable coins," the U.S. has crafted a scam that exploits everyone—from foreign governments to ordinary people—while masquerading as a beacon of economic stability.
The treasury trap: America's IOU game
U.S. treasuries are the government's IOUs, issued to fund its reckless spending when taxes fall short. Investors—nations, corporations, pension funds—buy these bonds, expecting repayment with interest, or "yield." For decades, the world saw America as a safe bet, snapping up treasuries due to a strong dollar and decent returns. But the dollar's weakening, yields are lackluster, and the U.S.'s penchant for sanctions, asset seizures, and Swift network blacklisting has made it a risky borrower. The world's waking up, refusing to trade real value for America's shaky promises. When treasuries lose their shine, the U.S. scams the globe into buying them anyway.
The Fed's shell game: Printing fake money
The Federal Reserve is the crooked engine of this Ponzi scheme. Neither federal nor holding reserves, the Fed conjures money from nothing to buy treasuries when global demand dries up. The U.S. is loaning itself fake cash, then paying itself interest on a fiction—a hustle that would shame a con artist. As the issuer of the global reserve currency, America runs the biggest scam in history. Its debt is so massive that interest payments outstrip the cost of its war machine. Printing more dollars fuels inflation, gutting every American's purchasing power and spiking prices globally—a hidden tax on workers, a betrayal of savers, and a blow to those on fixed incomes.
The Genius Act's deception: Stablecoins as debt
The Genius Act elevates this scam with a ruthless bait-and-switch. Stablecoins, once digital dollars backed one-to-one by real cash, enabled efficient, permissionless transactions, bypassing the sluggish Swift network. They were a cornerstone of decentralized finance. But the Act allows stable coins to be backed by U.S. treasuries, turning them into tokenized government debt. With hundreds of billions circulating, every coin minted absorbs another slice of America's toxic debt. Unlike treasury buyers, stable coin holders get no yield—the law bans interest payments, leaving users with worthless digital IOUs while the U.S. reaps the benefits.
Outsourcing the scam: Bypassing the Fed
The Act hands money creation to private stable coin issuers, sidelining the Federal Reserve without a peep. These firms now churn out "dollars" backed by treasuries, flooding the world with America's debt disguised as currency. This exports inflation globally, forcing every stable coin holder—from a London banker to a Jakarta vendor—to prop up America's balance sheet while their money's value erodes. The U.S. dodges hyperinflation at home by spreading the pain worldwide, a masterclass in financial deception that screws over anyone holding these tokens.
The CBDC trap: A digital dictatorship
The Act's darkest twist is its potential to flip stable coins into a U.S.-controlled central bank digital currency (CBDC). A global currency, already everywhere, could become programmable overnight—every transaction tracked, every wallet freezeable, every token erasable—at Washington's whim. This isn't innovation; it's digital tyranny, trapping users in a system they didn't choose. From Europe to Asia, anyone holding a stable coin is unwittingly ensnared in America's debt machine, bankrolling its fiscal mess without consent or reward.
A historical playbook: Nixon's ghost
Russia is sounding the alarm, accusing the U.S. of shoving its $37.5 trillion debt into a "crypto cloud" to wipe its slate clean at the world's expense. They're right—it's a sinister scam. History proves America's form: in 1971, Nixon ditched the gold standard, calling it temporary, only to leave the world holding devalued dollars after Vietnam War spending. Now, 54 years later, the U.S. is pulling another fast one, disguising its debt as stablecoins to evade accountability. The Genius Act isn't a regulation; it's a weapon, turning stablecoins into a covert tool for dumping debt and seizing control.
The eightfold fraud: A global con
The Act's scam is eightfold: tokenized treasuries, zero-yield digital debt, a bypassed Fed, sidelined banks and Swift, exported inflation, and a CBDC trap—all tucked into a law nobody noticed. This is monetary imperialism, forcing the world to pay for America's sins while waving the flag of progress. To escape, some advocate ditching the dollar for Bitcoin, a currency beyond Washington's grasp. Otherwise, you're complicit in the greatest financial scam ever, bankrolling the richest nation's debt with every stable coin you hold.
Choose now: stay in the scam or break free.
The views do not necessarily reflect those of DotDotNews.
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