Stablecoins and the Unstable Truth Behind Them

Finance U Public Finance U
, ,
1

Originally published at: https://peakprosperity.com/stablecoins-and-the-unstable-truth-behind-them/

Aaron Day of the Daylight Freedom Foundation is my guest on Finance U, discussing the encroaching digital technocracy and the alarming developments around stablecoins and central bank digital currencies (CBDCs). We kicked off by exploring how CBDCs, despite promises from figures like Trump to avoid them, might be sneaking in through a backdoor via stablecoins and legislation like the Genius Act currently moving through Congress. These stablecoins, digital tokens pegged to the dollar, are being positioned under strict government control with financial surveillance, monthly audits, and a requirement to back them with U.S. Treasuries. Aaron pointed out a chilling motive: with countries like China shying away from buying our debt and our deficits ballooning to $2.5 trillion annually, the government sees stablecoins as a way to fund this gap, potentially selling $2 trillion in Treasuries. It’s a Trojan horse for a CBDC, expanding U.S. government reach globally.

I’ve been wrestling with the broader context of this digital revolution, feeling like we’re being captured in a system of control. From doom scrolling to subtle censorship on platforms like YouTube, I see how our emotions and behaviors are being nudged—think fifth-generation warfare with sophisticated tools targeting our subconscious. Aaron and I discussed how social media algorithms, as admitted by figures like Elon Musk, manipulate our dopamine and limbic systems, not just for ads but to push narratives. This ties into technocracy, a belief system where scientists and engineers decide for us, viewing humans as optional in a deterministic world. Musk himself, with his technocratic roots, seems to wield these tools, possibly shaping narratives through platforms like X to promote this ideology.

We also delved into tokenization, the process of turning assets into digital tokens on blockchains. While it could offer freedom if decentralized, the reality is grimmer—centralized tokens allow programmability and censorship by governments or corporations like BlackRock. Imagine your car or house token frozen because of a social media post. Stablecoins, under the Genius Act, are set to become just that: programmable, trackable, and under surveillance akin to CBDCs, despite the anti-CBDC rhetoric. Aaron highlighted how major banks like JP Morgan might end up controlling these stablecoins, ensuring no real privacy gain.

I’m deeply concerned about the loss of free will in this setup. Aaron and I agree that the battle is spiritual, about reclaiming autonomy against a system using fear and propaganda—think COVID nudges or misinformation penalties—to keep us in line. The political system, rigged with data-driven voter manipulation and preselected candidates, offers no real choice. My takeaway? We’re in a technocratic push towards total control, where every asset could be tokenized and programmed, from money to land, under a social credit system. I advocate for resilience—gardens, gold, opting out—because walking away might be our only power against this fragile, control-obsessed edifice.

FINANCIAL DISCLAIMER. PEAK PROSPERITY, LLC, AND PEAK FINANCIAL INVESTING ARE NOT ENGAGED IN RENDERING LEGAL, TAX, OR FINANCIAL ADVICE OR SERVICES VIA THIS WEBSITE. NEITHER PEAK PROSPERITY, LLC NOR PEAK FINANCIAL INVESTING ARE FINANCIAL PLANNERS, BROKERS, OR TAX ADVISORS. Their websites are intended only to assist you in your financial education. Your personal financial situation is unique, and any information and advice obtained through this website may not be appropriate for your situation. Accordingly, before making any final decisions or implementing any financial strategy, you should consider obtaining additional information and advice from your accountant or other financial advisers who are fully aware of your individual circumstances.

12 Likes
2

As scary as it all feels im grateful that Aaron is dighing in a sharing the warning with whoevet will listen. Great interview!

8 Likes
3

Actually, I wanted to post my comment to stablecoins and AI here
 but accidentally I dropped it in a similar article of Chris.

[CBDCs, Control, and Crumbling Fiat Currencies - #9 by andy-in-the-sun]

2 Likes
4

Having listened through this I could not but think of that trilogy “The Matrix”.

4 Likes
5

Chris you are a fabuluous interviewer, but i do think you missed one of the elephants in the room, unless i missed it
you didnt ask Aaron what he has done to remove himself from the system. He said that he no longer has bank accounts and he also doesnt use cash
so how on earth does he operate in this world? If we are all to move to a parallel system, then what is it and how do we opt int, or become a part of creating it. SOunds like Aaron has already found a way that may work
for now. Would love to know what it is


20 Likes
6

@richevendenyahoo-com-au Can you please point out where in the video (and is it Part 1 or Part 2) Aaron states this? I can’t seem to locate this.

Thanks.

7

Ah
just found this on his website. Scroll down to the box on this page, under all of the icons of companies. Apparently, he uses crypto, gold, and silver. He says that there are more details about this in one of his books.

4 Likes
8

image
image855×821 78.5 KB

image
image712×372 36.4 KB

2 Likes
9

Very interesting interview, I wouldn’t have mind it being 15 hours long at all!

We’ll see what effects tomorrow, ‘Tariff day’ will have on the markets, Copper being clobbered brutally already. Definitely not a coincidence it falls on a Friday.

I have a similar curiousity to see what effect the introduction of requiring Treasuries and USD’s to back Stable coins at a 1:1 ratio will have of the crypto space, I didn’t know such a large amount of Bitcoin’s price was pumped up by Theter, which on turn might be backed by nothing or not much.

A pulling the rug moment?

I don’t think that time is in yet, seeing all the crypto pumpers in Trumps admin. But Trump is liking this unpredictability game so who knows. 


The ECB ready to launch its CBDC doesn’t surprise me, I had a feeling since end of last year that this could really be the year they fail to kick the can down the road further (or more simply decide to break the system purposefully), traditionally in September, so ‘tariff war’ in august, financial collapse initiating in September and their CDBC being introduced among fear of losing your life savings and general chaos by October sounds possible.

Not that it matters, as stated in the interview, a CBDC owned by the central isn’t any different than stable coins owned by those who own the Central Banks.

Does anybody remember Libra (I think it was named?) that digital currency Facebook wanted to implement on their platform for payments, which congress back then made a big fuss to strike down?
Interesting to know why FB was demonised then for wanting to do so, as FB does play the game as required by the Elite on every other aspect
 Was it too early? Just some more smoke to deflect attention?

In conclusion I fully agree that via your decisions and actions you can project your vision on how you want the world to be into reality. That’s why I chose PM’s as I want to be grounded in reality, unplugging myself the most I can from the matrix and using the matrix only in constructive ways like learning from knowledgeable people like Chris and many others. To me personally PM’s also have a spiritual element as they are physical representations of the mysteries of the Universe, the origin of gold or how gold dissolves in mercury to then reappear is simply magic and makes me wonder how much more is possible!
For this same reason I’ll never touch bonds as I don’t want to enslave myself and everybody else to this demonic human construct, the same apply to Bitcoin in my personal belief. Some decentralised token backed with something tangible ,guaranteed by regular audits and possibly not owned by Black Rock/Vanguard might interest me as I’m not opposed to the technology itself, per sĂ©, more on how humanity always tend to use new technology to subdue others.

3 Likes
10

I found Aaron’s interviews illuminating yet horrifying (esp Part 2) regarding the details revealing how much of the technocratic control grid that Catherine Austin Fitts has been warning about. Some questions I have from part 2, are whether BTC is still a safe investment? With what he shared about the price manipulation through Tether, and Fitts concerns about it being a pump and dump Ponzi scheme [Catherine Austin Fits - Hijacking Bitcoin: Hidden History of BTC Steve Patterson - Full Interview] for the wealthy to do a land grab?

Someone mentioned Dr. Jack Kruse in a post recently (sorry just learning how to navigate this platform so don’t know where ) I have been a member of Dr. Jack Kruse for a few years, and they are all totally into BTC. Jack thinks BTC is the only escape route and with the changes in the Trump agenda, he shared with his members recently that he now thinks we only have 18 months to be able to get our $ out of the US. His members in UK and Canada can no longer get their money out of the banks. Here is a recent podcast where he addresses the timeline if anyone is interested. He doesn’t mince words
.https://youtu.be/gZa4guDSaRU?si=BmUDH2PK76DuODBo

Can be anyone who is tech knowledgeable shine a light on what Aaron said about the Tether BTC manipulation risks, and whether BTC is still a safe investment at these increased prices?

This man talks about the upcoming tokenization of gold with Stablecoins, which shook my feelings of safety in PMs as a work around. If anyone watches it I would find it very helpful to hear your thoughts. This man has many short videos that unpack similar problems with stablecoins that Aaron spoke about, that have been good for sharing with family and friends. Here is the one on gold. https://www.youtube.com/watch?v=6pOQKbIkh1w))

I have been looking for tech privacy methods, and recently watched a interview with Matt Kim, who is a privacy expert with a company vp.net that doesn’t view or store any of our information, unlike others it sounds like.

So grateful for this community and your discussions about these important topics!

8 Likes
11

Excuse me! Let’s get historical fact correct.
When I first came across Propaganda by Edward Bernays, I too thought it was a how-to on manipulation by WWII-era media [radio, cinema]. Then, I discovered it was actually written in 1928, about the same time Hitler’s Nazis were working on more effective propaganda campaigns in Germany.
It is entirely incorrect to say that Bernays’ work came out of the need to defeat Communism. In fact, to my amazement, it predated the clear Nazi menace in the early 1930’s. It is true that modern communication and travel were on the horizon (Lindberg, trans-Atlantic phone cable, early TV).

Mattias Desmet, in “the Psychology of Totalitarianism” talks about the evolving nature of methods of controlling a population. In Spiral Dynamics (SDi) terms, we start with Warlord cultures, where he with the biggest club terrorizes a population. Then, control evolves to anointed King, backed up by God, with rules to control larger groups.
Once cultures evolve into the leader backed up by rules, those individuals with War Lord aspirations became dictators. There is no question of anointed by God or consent of the governed, simply a leader and henchmen holding control by force.
Desmet sees a new phenomena emerging in the 20th century which he calls mass formation where a mechanistic, propaganda driven approach cons a large portion of a population into offering active consent in their subjugation.
Stalin and Hitler are early versions of this mass psychosis. The difference between Hitler and what we see today is interesting. Hitler (and Stalin) were very much cast in the dictator/top-down mode of control. https://bam.files.bbci.co.uk/bam/live/content/zwq7g82/large

image
image624×622 37.6 KB

As I remember Bernays, his work is basically about how to use the existing Western social structure to drive behavior. In today’s terms, Bernays was suggesting we find the “influencers” within local communities. He basically advocates identifying local “elites”, who would then set the local narratives. In an era before even a concept of 24-hr, global CNN new cycles and social media, Bernays envisioned doing this on a mostly a local level, where he would identify leaders in a community, convince them to spout what we would call a narrative and they would spread the ideas to all the “normies” under their influence.
This is a bit of a Victorian/Traditionalist model of how social influence works (SDi Blue stage), where people look to “their Betters” to tell them what to think.
In the Modern (SDi Orange) era mechanistic world, totalitarianism has moved on to Desmet’s Mass Formation where large portions of a society actively collude in their subjugation. Far from a way to fight Communism, mind control today is simply the logical evolution of early experimentation by Stalin, Hitler and Mao. Interestingly, it seldom comes bottom up, but rather appears to be a byproduct of attempts to gain control by unsuccessful elites.

5 Likes
12

I follow CAF as well, and she’s been speaking to “Trump’s” control grid buildout for as long as I’e been following her (4+years), acknowledging that it’s not really Trump, he’s been given his marching orders/script. This rings true for me at this point, as much as I’d like to think otherwise.

2 Likes
13

Always good to hear from Aaron. I think what he was talking about in the last 10-20 minutes is very important. Crypto has the potential to be a very powerful tool for taking power back from the globalist, technocrat, power-hungry miscreants that have been accumulating it for centuries. The direction it is going right now will do the opposite, but that doesn’t mean the potential isn’t there. We just need people to opt into user controlled and operated systems rather than the private control grids that are being prepared for us.

Smart contracts are very powerful tools when built right. A prime example being decentralized exchanges (DEX). We have our investment assets like stocks and bonds managed by centralized digital institutions right now. Great Taking style, they hold all our stuff “for us” and play all kinds of games with that. With a DEX we can take our stuff back and get rid of the vanguards, etrades, blackrocks, etc. They allow us to have custody of our assets and still swap them with the convenience of the centralized digital systems.

So I am happy to hear Aaron share the same sentiment and present a viewpoint that isn’t just rejection of digital assets.

1 Like
14

That, my good sir, is a nudge. A nudge away from freedom toward much more controlled cryptos. There are some challenges, but show me the article that says:

“Internet banking isn’t ready for Quantum Computers”

It’s actually much more vulnerable than Bitcoin. I’ll wait for your article.

1 Like
15

Safe? No, there’s nothing safe right now. We’re entering a time of chaos, and our leaders are crooks. Will the price, as measured in USD, take a bath? Yes. From here? I don’t know. The printing of the USD suggests it should go up like a rocket, not to mention the utility for sovereigns and large players to trade across sanction barriers during a war. Forcing Tether to unload BTC for the sake of regulation and returning the Bitfinex BTC suggests it should fall like a stone. Most likely it’ll do both. Determining which happens first is a trillion-dollar question.

I will say that I like it as a store of wealth, so as I make dollars in the market, I tie them to BTC and metals, mostly so they don’t evaporate from inflation. I don’t expect this to change any time soon. If it goes down, then I’ll get more interested in rotating in.

1 Like
16

Aaron is an excellent guest. I’ll just pick on one point - the ease or difficulty of issuing tokens on Ethereum. If you want a standard, “on the menu” token, it’s really easy. I issued one on a test chain, just to see what it’s like. Then I put some test ETH and my token into a Uniswap contract. I could then “Buy/Sell” my token for test ETH on the DEX - so it had an exchange rate. Only took me a couple of hours total.

He is right if you want an “off the menu” token on the ETH chain, because maybe you have custom requirements. Maybe you shouldn’t have custom requirements for your token? There aren’t really that many legitimate programming requirements, and they should all be “on the menu” by now. Anyway, if you want your special token rules, then it gets really hard. The language was not designed for proof of correctness, and any bug is an extremely ugly problem.

Privacy is also significantly worse on ETH than with BTC. This is because you only use a single address with ETH and that being doxed is the end. Whereas with BTC you constantly change addresses, and they need to infer which output is yours and which is the payment, step by step.

17

Tokenization will echo what Mitch Vexler has seen in property tax 
 with an algorithm the controller of the tokens (stable coins) will be able to target specific types or groups of people.

1 Like
18

I appreciate your sharing your thoughts on BTC. I am wondering since you also invest in PM, whether you have thoughts you’d be willing to share on the link on the tokenization of gold, if you watched it. Thanks!

19

Chris, I’m totally with you on the confusion about the “excess demand” for Treasuries.

If I want to get a billion dollars in Tether, I need to send them a billion dollars cash and they will send me tokens. Where do I get the cash? I could sell my money market accounts (held in Treasuries), I could sell my Treasuries, I could pull it out of the bank (likely held in Treasuries)
There’s no excess demand unless someone had a billion dollars under the mattress.

What it could do is shift demand, I suppose: maybe I sell my stocks, and use that cash to buy Tether, and then they buy Treasuries. But where did the guy who bought my stocks get a billion in cash? Bank account, money market, etc etc.

Bastiat taught us to look past first-order effects. 200 years later, only 0.01% of people actually do that.

3 Likes
20

Exactly. The cost of hacking a Bitcoin private key is probably a quadrillion times higher than your stupid bank account password.

2 Likes