What the heck are stable coins and what are they attempting to do? Very good discussion of how the wars play into the stablecoin market, which destroy local economies…
What the heck are stable coins and what are they attempting to do? Very good discussion of how the wars play into the stablecoin market, which destroy local economies…
USDT stablecoin is issued by Tether Holdings, is known as Tether, & has as its custodian Cantor Fitzgerald, where Sec. of Commerce Howard Lutnick was president, now run by his 28 y/o son
You may wish to scroll down to #5 if you want to avoid a long discusion about the costs of this war and other recent military actions we have been entangled in.
Here is just one juicy paragraph:
The Federal Reserve Bank of Kansas City. Economist Stefan Jacewitz published an analysis in August 2025 showing that if the stablecoin market grew from $250 billion to $900 billion, it would result in a $325 billion reduction in bank lending to the economy. For every dollar moved from a bank deposit to a stablecoin, bank lending decreases by roughly fifty cents. Treasury holdings increase by thirty cents. The net effect is a transfer from productive lending to government debt financing.
The author postulates that the stablecoin market will bring us to the equivalent of another Savings and Loan debacle.
I watched the big banks take out the savings and loans in the 1980s. I watched them do it again in 2008 with the mortgage market. The pattern is the same every time: deregulate, extract, collapse, consolidate. The difference now is the scale. In the 1980s, it was American S&Ls. In 2008, it was the American housing market. In 2026, it is the domestic banking system and the savings of the Global South simultaneously. The technology is better. The victim pool is global. And the mechanism is encoded in federal law, signed by the president, and celebrated as innovation.
The 3,200 bankers who signed that letter knew what was coming. The Kansas City Fed modeled it. The Federal Reserve documented the contagion pathway. Warren described it on the Senate floor. And the bill passed anyway, because the people who profit from the outcome are the same people who cast the votes.
And this beauty:
Dan[iel Ellsberg] spent the last years of his life trying to warn people about the dangers of nuclear brinkmanship. He would have recognized what is happening now instantly—not the nuclear dimension, though that is present, but the financial dimension. The discovery that you don’t need to convince the public to fund a war if you can build a system that funds itself automatically, drawing on the savings of people who don’t even know they’re participating.
They have built that system.
A woman in Buenos Aires buys a stablecoin to protect her savings. Her purchase flows through Tether, into Cantor Fitzgerald, into a Treasury bond, into the Pentagon’s account, into a Tomahawk missile, into a strike on Iranian infrastructure, into an oil price spike, into the destabilization of her economy, into more capital flight, into more stablecoin purchases.
The loop closes. The checks write themselves—automatically, algorithmically, funded by the panic of the people being bombed.
The GENIUS Act legalized it. The war operationalized it. The institutions that should have stopped it published their warnings in academic papers that nobody in Congress read before voting 68–30.
The old petrodollar required the Saudis to recycle oil revenue into Treasuries. It required diplomacy, security guarantees, relationships. The shadow petrodollar [stablecoins] requires nothing. It requires only instability. It feeds on the fear it creates.
It is a very long article, but extremely powerful, so I recommend that you read it anyway.