Russia Says U.S. Planning $37 Trillion Crypto Reset

So at the recent Eastern Economic Forum in Russia, one of Vladimir Putin's closest advisors said something that got a lot of attention. Right now, America is trying to change the rules on the gold and cryptocurrency markets. Remember what their debt is. $35 trillion. He said the United States is preparing to use crypto and stablecoins to secretly devalue its entire $37 trillion debt. He says the United States is plotting to put that debt into a crypto cloud which would reset the system, basically leaving the rest of the world just holding the bag. Now, this might sound like some crazy theory, but a version of this story has been said before by billionaire CEO of MicroStrategy, Michael Saylor. He actually advised President Trump to, quote, dump all the U.S. gold and buy Bitcoin. Dump your gold, sell all the U.S. gold, buy Bitcoin, then the trade is free because you could buy 5 million Bitcoin for the cost of the gold. You will demonetize the entire gold asset class and our enemies hold gold in their banks, so their assets would go to zero, our assets would go to a hundred trillion dollars, and we would control the world's reserve capital network as well as the world's reserve currency network. The $37 trillion question though is, is how realistic is this and would this actually work? Because I think the answer is, it's not just going to work. It's going to be inevitable and I think it's going to happen. Not exactly in that way, but that's what I'm going to help explain in today's video. I'm going to show you what Putin's advisor exactly said and how the U.S. will devalue its $37 trillion worth of debt with stablecoins and Bitcoin. It's a really interesting story, so with that said, let's get into it. Hi, my name is Andrey Jikh, hope you're doing well. Come for the finance and stay for the Bitcoin. So, okay, first question is, who is the person that said all this? Now, his name is Anton Kobyakov and he is the senior advisor to Russia's President Vladimir Putin. And he's been in that job for over a decade. He basically helps with Russia's messaging at big events like the Eastern Economic Forum. Now, in his speech, he said that the U.S. is trying to rewrite the rules of the gold and crypto markets and that the ultimate goal of the United States is to push the whole world into what he called the crypto cloud. And once the world is there, he says it's going to move its huge $37 trillion worth of national debt into assets like stablecoins and then devalue it, which would essentially wipe the slate clean. Okay, second question then is, what does it actually mean to devalue the debt? And how does that work? So, here goes. Imagine that the whole world is just worth this $100 bill. Let's say I borrow all of it, right? Every single dollar. And now I owe and I have to pay it back. The problem is, paying it back the hard way means I have to pay it back and give it back, right? But luckily, I have a special superpower because I control the world reserve currency. So, instead of repaying it back with the same $100 bill I just borrowed, I could just create another $100 bill out of thin air. Well, now the world doesn't just have $100 in circulation anymore. It now has $200, which is now trying to buy all the same things in the world because we didn't make more stuff. So, what happens next? The price of all those things goes up, right? Things like real estate, stocks, gold, especially the things everybody wants, they all go up. The groceries you used to pay $1 for now cost $2. Everything becomes more expensive because, again, the supply of money doubled, but the supply of stuff stayed the same. That's inflation. Now, when I go to give you back your $100, it looks like I just repaid you back in full. But in reality, I cheated because now your $100 bill doesn't buy you the same amount of stuff because I diluted the money so it now only buys you half as much. I devalued the debt. What most people don't realize, though, is that this is literally the oldest trick in the book. In a lot of ways, it's how the United States has been paying for its debt this whole time. Devaluing doesn't mean defaulting. It doesn't mean not paying back. It means to lower the real value of that debt through inflation or currency manipulation. And this has happened over and over again throughout time. After World War II, during the inflationary 1970s, and even more recently after the pandemic when we created a ton of new money and then everything went up in price, right? More dollars chasing the same amount of stuff. So when Russia's advisor says that the US might use crypto to devalue its debt, he's not telling us anything new, right? He's describing something the US has been doing for a really long time. Now, if you take that same trick I just explained and you push it out to the rest of the world, that's what stablecoins let you do. And just to be clear, this isn't literally exchanging the $37 trillion into stablecoins. It's using dollar-pegged stablecoins backed by treasuries to spread liabilities globally. When those dollars are inflated, the loss gets shared by anyone holding the tokens, but we'll get into that later. But also speaking of integrating stablecoins into everyday life, did you know that it's possible to earn what I think will be the future World Reserve asset without ever buying it? That's what I've been doing with the Bitcoin credit card by Gemini, which is today's sponsor, and it's a card I've been using for a while now. All opinions are my own and were not influenced by Gemini. I use it like any other regular credit card for gas, groceries, and I earn Bitcoin every time I use it. 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But now, here's arguably the most important thing you'll ever understand about the economy, and this is credit to Jeff Booth for this one. Just remember this all the time. The natural state of the economy is deflationary. So what does that mean? Well, it means if the amount of money in the entire world stayed the same, like let's say there was only ever this $100 bill in the entire world, right? And it was always that amount. Over time, as technology gets more efficient, as we get better and better at making stuff, the price of everything would naturally go down. Things would get cheaper because productivity goes up, but the money supply stays the same. That is the natural order of the universe. It's decay. Things get cheaper over time, and that's how it should be. But if you think about it, that's not how the world we live in actually works for some reason, and that's because governments can make more money. And when they do, that's when you hear, oh, wait a minute, gold, real estate, stocks, Bitcoin, that's hit an all-time high. But the reality is it's not really that those assets are going up in price. What's really happening is that the dollar is going down because we're making more of them. So it now takes more of them to buy the same thing. And when the new money floods the system, all that extra liquidity, as it's called, has to find a home. It has to find a place to go so that it doesn't become worth less. So it gets put into things like real estate, stocks, gold, Bitcoin, which is also why, over the long run, those assets look like they go up forever. In reality, they're just holding their purchasing power, while the money that's underneath all of that gets weaker and weaker. So then the question is, what if you can expand this superpower, right? You could widen the same trick beyond the U.S. borders. That's where stablecoins come in. Okay, but hold on. If the U.S. can already devalue its debt with regular inflation, what does it matter if it can do the same with stablecoins, right? This is why Russia's advisor thinks the U.S. will actually do this. The answer comes down to distribution and control. You see, when the U.S. inflates the dollar, the economy starts to feel the pain right away. We all see the higher grocery bills, right? The more expensive house prices, the energy costs going up, potentially higher interest rates to cool it down. Those CPI and Consumer Price Index reports go up, and then people get upset, right? But stablecoins, they change that equation. Because stablecoins park reserves in short-term U.S. treasuries, so the demand for dollars in treasuries can actually go up as adoption grows, making the whole thing kind of self-reinforcing. Every time someone uses USDT or USDC throughout the rest of the world, they're basically holding a digital IOU backed by U.S. treasuries. That means they are indirectly helping fund America's debt without actually buying U.S. treasuries, right? So if the U.S. devalues its debt through inflation, the burden doesn't just hit American citizens. It gets exported worldwide through the stablecoin system. So inflation then becomes kind of a shared tax that stablecoin holders everywhere are forced to pay because their digital dollars also lose purchasing power at the same time. Now, this is also technically true of today's system because dollars are everywhere throughout the world. But this would become a much bigger market that would also exist on people's smartphones. And here's the other piece of the puzzle. Stablecoins can look neutral because they could be created by private companies, not just the government. What that means is they don't carry the same political baggage that is associated with the Federal Reserve or the Treasury. And under the Genius Act, it says only approved issuers like banks, trust companies, or non-bank firms can get special approval. They can issue regulated dollar-backed stablecoins in the United States. So if Apple or Meta wanted to, they could create their own currency like Metacoin, right? All they got to do to get approval is just suck up to the president a little, right? How much are you spending, would you say, over the next few years? I mean, I think it's probably going to be something like at least $600 billion. Show your loyalty, spend a little bit of money. And that's why stablecoins are going to play such a huge role in the devaluation of our debt. It's kind of CBDC level of control without the CBDC brand. Now, here's why. The rest of the world wants no part in any of this. And we know it doesn't because of how much gold the world has been buying. That's what's happening to gold right now. Countries are like, we don't want your stablecoins. Give us gold because it was the greed upon standard for thousands of years. So let's just go back to that. But why don't they want any part of this, right? It's because even though stablecoins are supposed to be backed one-to-one by real U.S. assets like dollars or treasuries, in theory, every single stablecoin in circulation should have a real dollar or bond equivalent sitting right behind it. The problem is there's no way for a person or a foreign government to audit that claim with 100% certainty. Companies like Tether and Circle release reports, but you have to trust the issuer and the auditor, and they're all mostly U.S.-based. And when it comes to trust, especially when it comes to trillions of dollars, that's a big ask between countries. Even if one day blockchain technology makes it possible to fully audit those reserves in real time, that still doesn't really solve the bigger problem, which is that the U.S. can always change the rules. Remember, the government once promised that dollars would always be redeemable for gold, and then in 1971, Nixon just rug pulls everyone, right? That link was cut. So from the world's perspective, that was kind of like the ultimate rule change, right? That was the promise of redemption and then just kidding. So a trust us token isn't really going to cut it. There's nothing technical that stops the U.S. from doing the exact same thing, but this time with stablecoins. That's why there is so much distrust in the world about moving to this new digital system. So then the next question is, will the U.S. actually do this then? I actually think it's more possible, maybe even inevitable, that the U.S. is already experimenting with this idea, just not in the way that we hear about it. For example, Michael Saylor, he was very public, right? He's advised Donald Trump and his family that America should have a Bitcoin strategic reserve. His plan was if the U.S. sold off all its gold and bought Bitcoin, it would crush gold prices, it would hurt competing countries like China and Russia, and at the same time, it would send Bitcoin's price way up and recapitalize America's balance sheet. But in the end, that's not what ended up happening. Instead, during Trump's presidency, the idea of this U.S. Bitcoin reserve, it ended up being just an idea that was teased, but it was never fully something that became real. The U.S. said it would never use taxpayer dollars to buy any Bitcoin, and it really hasn't been buying any, at least not that we know of publicly. So I don't think it's going to happen the way Michael Saylor was advising publicly it would happen. But this is where the private angle comes in. Because while the government might not be openly buying Bitcoin, there's a backdoor. There's another way this could happen behind the scenes. So think about microstrategy, right? This stock. The company has basically become a public Bitcoin proxy with Michael Saylor. They've been buying Bitcoin nonstop. They now hold hundreds of thousands of Bitcoins. So what if, instead of the U.S. government buying Bitcoin directly and then risking global panic, what if it's easier to just let a corporation do it first? That way, it doesn't look like some central bank operation and no one's really paying attention. And then later, if Bitcoin really does become a strategic asset, the U.S. government could take in and take a partial stake in microstrategy, the same way it took 10% ownership in companies like Intel. So this precedent already exists. I mean, think about it. Why would the U.S. openly risk crashing the gold market with a trillion-dollar Bitcoin purchase or a forced stablecoin rollout? Why would it sell its gold if it still has any, right? It's way easier and much smarter just to let private companies do the heavy lifting first, let them experiment, and then the U.S. government could come in and adopt what's already working. That's how the U.S. has always played the game. Innovation starts privately, and when it becomes way too important to ignore, it gets absorbed nationally, right? This way, it's way more subtle, way more gradual, and it's kind of deniable until the day it becomes official. But the point I'm trying to make is that there's a lot of ways that this could happen and probably will happen. So yes, the Russian advisor is 100% correct in his assumption that that's what the U.S. will most likely do at some point in the future if it cares about solving its national debt. But whatever ends up happening, either way, I'd love to hear your thoughts. Let me know down in the comments below. I hope you have a wonderful rest of your day. Smash the like button, subscribe if you haven't already. I'd love to see you back here next week. I'll see you soon. Bye-bye.