The Growing US Debt
According to USDebtCock.org, the US is now sitting on over $37.457 trillion in debt. This translates to a $109,103 debt per capita (per citizen) or $324,123 debt per taxpayer. The breakdown of the numbers also reflected $7.37 trillion in federal spending and $1.9 trillion in budget deficit, against $5.465 trillion tax revenue.
President Donald Trump’s signing of the “One Big Beautiful Act,” which increased the national debt cap by $5 trillion, has fueled more concern about further inflating the numbers. However, Russian President Vladimir Putin’s adviser has recently revealed the USA’s exit plan for its ballooning debt.
The USA’s Crypto and Stablecoin Masterstroke
In an interesting development, a video of Anton Kobyakov, Advisor to the President of the Russian Federation and Executive Secretary of the EEF Organizing Committee, has recently begun circulating across the crypto community. In a press briefing during the Eastern Economic Forum last weekend, he stated that the US is now rewriting the gold and crypto market rules.
Kobyakov highlighted that gold and crypto essentially serve as alternatives to the traditional currency system. However, the US is pulling the strings to ensure the dollar’s dominance and “urgently address the declining trust” in it.
Drawing parallels to its maneuverings in the 1930s during the Great Depression and the 1970s when it abandoned the gold standard monetary policy, Kobyakov stressed that the US is again planning to “solve its financial problems at the world’s expense.” The Russian government official pointed out that the US is “pushing everyone into the crypto cloud.”
Kobyakov pointed out that the White House aims to move its debt into stablecoins. It expects the new measure to devalue the national debt and allow the country to “start from scratch.”
The official didn’t elaborate on how the US could achieve such a feat, though.
But Here’s How the US Could Theoretically Pull It Off
Reading between the lines in Kobyakov’s arguments and applying it to existing financial market dynamics as well as the context of the GENIUS Act, the core idea in the USA’s stablecoin game plan is to create a new, passive, and growing source of demand for its debt. This could be a form of “financial repression” to lower the government’s cost of borrowing and managing its debt.
The USA’s present regulatory climate reinforces such a narrative by promoting stablecoin adoption and innovation, while mandating issuers to hold a significant portion of their physical reserves in US government debt like Treasury bills or bonds. With these mechanics, the more widely adopted and used these stablecoins become, the more their issuers would be required to buy US government debt to back them.
In effect, as stablecoin usage grows globally, driven by its use in cross-border payments, decentralized finance (DeFi), and as a store of value, the demand for US Treasuries will increase. This is because every new stablecoin minted would effectively require the issuer to purchase a corresponding US debt, creating a large, self-perpetuating market for US debt independent of traditional buyers like foreign governments or central banks.
The growing demand for US Treasuries would help the US government continue to issue debt without driving up interest rates. This allows the government to “inflate away” the value of its debt over time. While the nominal value of the debt remains the same, its real (inflation-adjusted) value decreases, making it easier to pay off.
Kobyakov’s statement that the US wants to “devalue the national debt” aligns with the concept of inflating away the debt’s value.
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