The following item appears in the current issue of the {EIR Strategic Alert weekly, No. 51-52:}
One of the problems characterizing Donald Trump’s National Security Strategy is the power assigned to Wall Street banks. As the U.S. is moving to decouple even more the financial system from the real economy, China is doing the opposite, cracking down on attempts to expand the cancer to Hong Kong.
As of Dec. 9, the United States has taken a set of steps in order to flood the markets with liquidity in the attempt to avoid the inevitable meltdown of the system. First, on Dec. 11, the Federal Reserve’s FOMC has lowered the Fed funds interest rates by 0.25 points. Second, the Fed has resumed (already as of Dec. 1) Quantitative Easing at the rate of $40 billion monthly purchase of assets. Third, the Commodity Futures Trading Commission (CFTC) announced the acceptance of “certain” cryptos as collateral for derivatives ("tokenized collateral"). Fourth, the Office of the Comptroller of Currency has allowed banks to intermediate risk free in the crypto-asset trade.
The OCC has “chartered” five crypto “vehicles”: Ripple, Circle, BitGo, Fidelity Digital Assets and Paxos. Three of them, Ripple, Circle and Paxos, issue their own stablecoin.
Reality is overcoming fantasy. Lyndon LaRouche used to call it “monopoly money” or “funny money,” referring to U.S. currency losing connection to the real economy. Crypto “currencies,” including stablecoins, are really funny money, and the decision to accept them as collateral shows how insane the Fed has become.
