Russia: 'The U.S. Plot to Dump $37 Trillion Into Crypto Reset'

About this video

• Video Title: Russia: 'The U.S. Plot to Dump $37 Trillion Into Crypto Reset'
• Channel: Andrei Jikh
• Speakers: Andrei Jikh
• Duration: 18:22

Overview

This video discusses a statement made by a close advisor to Vladimir Putin regarding a purported U.S. plot to use cryptocurrency and stablecoins to devalue its $37 trillion debt. The speaker, Andrei Jikh, explores the concept of debt devaluation through inflation and currency manipulation, drawing parallels to historical economic events and the current role of stablecoins. He also touches upon the natural deflationary state of economies and how government actions create inflation, before examining the potential for private companies to play a role in this "crypto reset."

Key takeaways

• Russian Advisor's Claim: A senior advisor to Vladimir Putin, Anton Kobyakov, suggested that the U.S. plans to use crypto and stablecoins to devalue its $37 trillion debt by moving it into a "crypto cloud," effectively leaving other nations with devalued assets.
• Debt Devaluation Explained: Devaluing debt, as explained by the speaker, doesn't mean defaulting but rather lowering its real value through inflation or currency manipulation. This is achieved by increasing the money supply, which reduces the purchasing power of existing currency.
• Historical Precedent: The U.S. has historically devalued its debt through inflation, notably after World War II, during the 1970s, and after the pandemic when significant amounts of new money were created.
• Stablecoins and Global Debt: Stablecoins, backed by U.S. treasuries, could facilitate the global distribution of U.S. debt. As adoption grows, demand for dollars and treasuries might increase, creating a self-reinforcing cycle. When these dollars are inflated, the loss is shared by global stablecoin holders, effectively exporting the burden of inflation.
• Distrust in Stablecoins: Foreign countries are hesitant to embrace stablecoins due to a lack of transparency and auditability of reserves, coupled with a historical precedent of the U.S. changing financial rules (e.g., Nixon removing the gold standard in 1971).
• Private Sector Role: The speaker posits that the U.S. might not directly purchase Bitcoin or force stablecoin adoption but could allow private companies (like MicroStrategy) to lead the way in adopting crypto assets. The government could then absorb successful private initiatives later, a strategy it has historically employed.
• Natural Economic State: The video argues that the natural state of an economy is deflationary due to technological advancements and increased productivity. Government intervention, through money creation, is what leads to inflation.