aj on Nostr: Governments are financed by debt these days, having valuable assets that creditors ...
Governments are financed by debt these days, having valuable assets that creditors can claim if you default on repayments makes it easier to sell debt cheaply. So the reserve just sits there until the US defaults, at which point they give out BTC from the reserves to a subset of bond holders in order to avoid a larger collapse of the financial system. Social security forecasts probably means that's coming in the medium term? If the gov weren't debt financed (DOGE succeeds scenario) then you could build up the reserve 9 years out of 10, and use it to smooth out recessive in the remaining year. Requires an implausible amount of political discipline though.
Public companies buying bitcoin is just that it's a better savings vehicle than treasuries, and for tax reasons, distributing profits via issuing dividends or stock buybacks can suck
IMHO anyway.
Published at
2024-12-18 13:33:59Event JSON
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"content": "Governments are financed by debt these days, having valuable assets that creditors can claim if you default on repayments makes it easier to sell debt cheaply. So the reserve just sits there until the US defaults, at which point they give out BTC from the reserves to a subset of bond holders in order to avoid a larger collapse of the financial system. Social security forecasts probably means that's coming in the medium term? If the gov weren't debt financed (DOGE succeeds scenario) then you could build up the reserve 9 years out of 10, and use it to smooth out recessive in the remaining year. Requires an implausible amount of political discipline though.\n\nPublic companies buying bitcoin is just that it's a better savings vehicle than treasuries, and for tax reasons, distributing profits via issuing dividends or stock buybacks can suck \n\nIMHO anyway.",
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