The post Arthur Hayes says stablecoins will finance Trump’s ‘fascist appeared on BitcoinEthereumNews.com.

The U.S. economy is being rebuilt for war, and Arthur Hayes says crypto will be footing the bill. Not Bitcoin. Not Ether. Stablecoins. As Trump prepares to flood the system with credit to prop up defense production, Arthur argues that the buyers of this new wave of debt won’t be boomers or Wall Street, it’ll be stablecoin issuers like Tether, quietly buying up Treasury bills with crypto inflows. To understand this mess, you need to understand where the new money is coming from. According to Arthur, it’s not about GDP, taxes. Trump is copying China’s model where the state guarantees profits for “critical industries” like semiconductors, rare earths, and weapons. That forces banks to lend because profit is guaranteed. And with credit flowing, the U.S. ramps up military production at scale. MP Materials shows how Trump’s fascist credit plan works The first test case is MP Materials. They got a $1 billion loan backed by JPMorgan and Goldman Sachs to build a rare earth processing plant. Why’d the banks agree? Because the Department of Defense stepped in and guaranteed a floor price for the minerals, double the Chinese market rate. Oh, and the Pentagon’s now the company’s biggest shareholder. The deal looks like this: MP borrows $1,000, which creates $1,000 in fresh fiat. That money is used to build the plant and pay workers. Those workers spend money, create more deposits, and keep the cycle going. Meanwhile, the government buys the rare earths from MP, financed by fresh Treasury debt. The banks convert MP’s loan into reserves at the Fed and use those reserves to buy the debt. Net result? The banking system, the government, and the company all get richer. The fiat supply grows. Welcome to QE for Poor People, as Arthur humorously calls it. Source: Arthur Hayes This…

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Filed under: News - @ July 23, 2025 12:27 am