🔥 The Federal Reserve's Wosh's "Secret Blood Pack": Are Stablecoins the True Recipients of the Balance Sheet Reduction?

The crazy expansion of stablecoins is essentially finding off-system recipients for the Fed's balance sheet reduction.
1. The Achilles' heel of balance sheet reduction: collapse if no one takes the baton
Balance sheet reduction means the Fed sells government bonds and withdraws dollars. But the problem is—if they sell too aggressively, no one buys, bond prices plummet, yields soar, banks fail, companies go bankrupt... a financial tsunami.
Therefore, for the reduction to succeed, there must be continuous buyers.
2. Stablecoins: the "silliest" US bond buyers
Stablecoins (like USDT) are pegged 1:1 to the dollar. When users bring in money, issuers must buy highly liquid assets to prove reserves—preferably US bonds (especially short-term government bonds).
Currently, the stablecoin market is close to $300 billion, which means: more and more people worldwide are exchanging fiat currency for "crypto dollars," and issuers can only keep buying US bonds.
3. Perfect hedge? Balance sheet reduction selling bonds, stablecoins buying bonds
The Fed sells, stablecoins buy—this perfectly offsets each other.
The liquidity crisis of balance sheet reduction is quietly eased, and the "excess money" in the market is also locked up, helping to lower inflation.
It's like: the Fed is bleeding, and stablecoins are providing a new transfusion channel.
So now you understand why Wall Street and the Fed have suddenly become "tolerant" of stablecoins?
4. But risks also explode: bank runs = stampedes
Stablecoins are not banks. If one day a giant fails, and users rush to withdraw, issuers must sell hundreds of billions of dollars worth of US bonds within hours.
5. A bigger conspiracy: using stablecoins to borrow dollars and suck global blood
The Fed raises and cuts interest rates, previously only managing the US domestic market. Now stablecoins are spreading digital dollars worldwide—Latin America, Southeast Asia, Africa... businesses and the public are using them.
6. What should we do?
Hong Kong's experiment with stablecoins is the right move.
Don't wait to be drained; lay out plans in advance.
Additionally, when stablecoins reach trillions of dollars—so big it can't collapse—will the Fed still dare to raise or cut interest rates without looking at its face?
—By then, the Fed's independence might just become a joke.
One sentence summary:
In the short term, stablecoins are the "blood pack" for balance sheet reduction; in the long run, they could backfire on the entire dollar system. This show has just begun.