>There is some irony in the US gov objecting to Tether's methods. While the USD is backed by what exactly?
It's backed by the obligation to repay roughly $50 trillion (private plus public debt). I honestly don't get how people misunderstand the new system. The money system is quite simple. Money is just the liquid portion of credit and credit has value because a debtor has obligated himself to accept credit as payment.
A business isn't accepting USD because it has faith in the USD, it's because it is in debt and needs to earn the money back by providing goods and services or alternatively it needs the money to buy products and services from other companies that are in debt.
The way tether is run is quite strange. It's not a bank so people expect it to have a reasonable amount of cash reserves or alternatively they expect tether to declare that they do not intend to hold cash reserves and that holding tethers has a completely different risk profile than holding USD which also means it would have its own exchange rate vs USD instead of 1:1.
>Meanwhile, the 1 trillion dollar platinum coin is being proposed
That's just a hack to get around a self imposed debt ceiling. Everyone knows it's stupid. Blame the bigger idiots in congress that want it to be necessary.
It's backed by the obligation to repay roughly $50 trillion (private plus public debt). I honestly don't get how people misunderstand the new system. The money system is quite simple. Money is just the liquid portion of credit and credit has value because a debtor has obligated himself to accept credit as payment.
A business isn't accepting USD because it has faith in the USD, it's because it is in debt and needs to earn the money back by providing goods and services or alternatively it needs the money to buy products and services from other companies that are in debt.
The way tether is run is quite strange. It's not a bank so people expect it to have a reasonable amount of cash reserves or alternatively they expect tether to declare that they do not intend to hold cash reserves and that holding tethers has a completely different risk profile than holding USD which also means it would have its own exchange rate vs USD instead of 1:1.
>Meanwhile, the 1 trillion dollar platinum coin is being proposed
That's just a hack to get around a self imposed debt ceiling. Everyone knows it's stupid. Blame the bigger idiots in congress that want it to be necessary.