Indeed. The us currently has in its coffers a $29T hole [1]
You’re looking only at the liabilities without checking what assets those liabilities are backed by, and what kind of new revenue those liabilities created. Debt isn’t burned money, it’s invested money at work in the economy. Out creating new revenue to service said debt.
Also, the value of a dollar isn’t driven by the federal balance sheet but rather demand for those dollars. When dollars enter the world, via fractional reserve borrowing, the new dollars are issued against new debt. The obligation to repay the dollar to the lender is what creates demand for dollars and gives them value.
And right now, the picture isn't exactly rosy, certainly not something I'd invest in.
I'm no fan of Tether (as a matter of fact, I'm pretty certain it'll blow up in fairly short order. I am actually looking for a well constructed way to short it)
I was simply point out how ridiculous the comparison is.
From the pessimistic point of view that could be said about anything. But people around the world have little to no better options when it comes to the question “okay I finally have some credit, where do I put it into?”. It’s not rosy, but it is the least stinking pile of shit the world has.
I find it so amazing for a group of people who despise the USD how much energy they will spend defending a company whose entire business model is USD.
In defense of Tether, maxis always try to deflect with this stuff, as if a couple of people minting ERC20 tokens is comparable in any way to the US Govt.
