5 ms·

It really is quite obvious- the funny thing is the USD/Federal Reserve has been running the same scam for decades (expanding the money supply with no backing) a

It really is quite obvious- the funny thing is the USD/Federal Reserve has been running the same scam for decades (expanding the money supply with no backing) and it's just as obvious

iudqnolq 5y ago
The difference is the fed is up front USD is unbacked, whereas tether lies about USDT's backing. In the financial system it's often not a problem to sell something as long as you're up front about what it is.
threevox 5y ago
False equivalence much?
pavlov 5y ago
I didn't realize Tether owns eleven aircraft supercarriers and collects tax revenue from 330 million people. Pretty impressive for a company that operates out of a backroom somewhere in the Bahamas.
- Clewza313 5y ago
  That's on par for Tether, which has 13 employees managing ~$65B in funds, meaning everybody including the janitor manages a portfolio of $5B. The poor schmucks at Goldman Sachs can only manage around $18M per person.
- Smithalicious 5y ago
  I always enjoy this argument that approximately goes "don't worry, if the dollar goes tits up, Uncle Sam will just bomb people until it's alright again."
  - kevingadd 5y ago
    Unfortunately, it's true.
  - lazypenguin 5y ago
    More like “if the dollar goes tits up, Uncle Sam has enough assets in the real world to maintain infrastructure and law and order.”
  - thehappypm 5y ago
    US government services will always only accept USD, which means the dollar is tied back to real-world value. taxes, services, etc.
    - kenneth1amar 5y ago
      "Always"... is that a fact? Do you mind lending me that time-machine you're sitting on? Sounds like a bit of faith is mixed in with your argument. Sounds a bit hypocritical to me. You've placed your faith in the established system and are likely seeking to handicap the competition. How brave and noble.
      - thehappypm 5y ago
        This is one of the funniest replies I've seen so far in a crypto discussion.
        kenneth1amar 5y ago
        Nice, your over-confidence amuses me as well. I can at least be honest about my intentions: I hope your up to your neck in stocks and bonds. :)
        thehappypm 5y ago
        So much honesty in your 2 hour old account.
        uninteresting 5y ago
        Ha, here I was, unable to respond until hours later for having a dissenting view and your response is to use this ad-hominem attack for not adequately participating in your echo chamber. Complete lack of self-awareness, the perfect lackey. There aren't enough words to express my contempt for your lot. To return the favor, your experience with your dog, as you described, makes you sound like a soft-boiled egg that needs someone to manage your life for you. I can see why you feel this way now. and fuck you 'dang', you disingenuous double-dealing turd. Just in case you thought I forgot or didn't know what happens next on this platform.
  - Smithalicious 5y ago
    This is getting downvoted, but if I'm wrong, then please do explain to me what is this argument supposed to mean? I mean the one that's usually very explicitly phrased as "the value of the dollar is backed by the US military", which gets said all the time when people compare the value proposition of fiat currency to cryptocurrencies. I've always understood this to mean "if people stop accepting the USD, the military will make them do so by force". But by all means, do tell me of what other ways aircraft carriers can be used to support the value of the dollar. I'm not even saying that this is factually incorrect (though I don't know if it is). I'm just pointing out the perversity of this argument. It gets brought up surrounding the current inflation debate all the time too. I don't like the casual-ness with which people can say what amounts to, essentially, "don't worry, we can always resort to deadly violence if we need to."
- cheeseomlit 5y ago
  That doesn't legitimize it in my eyes, it's still a scam. Ancient Rome was also the leading regional superpower in its day, that doesn't make it OK for them to debase their currency by filling the silver coinage with lead.
deleted 5y ago
[deleted]
xwolfi 5y ago
And that caused downward spirals when it started, centuries ago. Paper money is tempting people to print since it started, however societies have learned how to do it for a net positive, will USDT manage the same?
throw_m239339 5y ago
Well you're right, retail banks and central banks do operate fractional reserves. The problem is that Tether/Bitfinex claim every single Tether is backed by a dollar but they are lying. If they want to operate a fractional reserve, why not register as a bank legally?
cortesoft 5y ago
The money supply has to expand because our economy expands. If an economy keeps producing more things more efficiently, you need your money supply to also expand, or you will have deflation and the economy will grind to a halt.
- cheeseomlit 5y ago
  If you produce things more efficiently they should cost less, the money supply shouldn't expand to make sure their cost stays the same or more. Nobody can be entrusted with the authority to "expand the money supply" and not abuse it to the point of collapse. Case in point: https://fred.stlouisfed.org/series/M1 https://fred.stlouisfed.org/series/M1
jfrunyon 5y ago
It's also just as obvious that everyone will agree for the foreseeable future that USD can be used to buy things, do things. Given that people already disagree about the status of Tether, it's not nearly as obvious.

It really is quite obvious- the funny thing is the USD/Federal Reserve has been running the same scam for decades (expanding the money supply with no backing) and it's just as obvious

iudqnolq 5y ago

The difference is the fed is up front USD is unbacked, whereas tether lies about USDT's backing. In the financial system it's often not a problem to sell something as long as you're up front about what it is.

threevox 5y ago

False equivalence much?

pavlov 5y ago

I didn't realize Tether owns eleven aircraft supercarriers and collects tax revenue from 330 million people. Pretty impressive for a company that operates out of a backroom somewhere in the Bahamas.

Clewza313 5y ago
That's on par for Tether, which has 13 employees managing ~$65B in funds, meaning everybody including the janitor manages a portfolio of $5B. The poor schmucks at Goldman Sachs can only manage around $18M per person.
Smithalicious 5y ago
I always enjoy this argument that approximately goes "don't worry, if the dollar goes tits up, Uncle Sam will just bomb people until it's alright again."
- kevingadd 5y ago
  Unfortunately, it's true.
- lazypenguin 5y ago
  More like “if the dollar goes tits up, Uncle Sam has enough assets in the real world to maintain infrastructure and law and order.”
- thehappypm 5y ago
  US government services will always only accept USD, which means the dollar is tied back to real-world value. taxes, services, etc.
  - kenneth1amar 5y ago
    "Always"... is that a fact? Do you mind lending me that time-machine you're sitting on? Sounds like a bit of faith is mixed in with your argument. Sounds a bit hypocritical to me. You've placed your faith in the established system and are likely seeking to handicap the competition. How brave and noble.
    - thehappypm 5y ago
      This is one of the funniest replies I've seen so far in a crypto discussion.
      - kenneth1amar 5y ago
        Nice, your over-confidence amuses me as well. I can at least be honest about my intentions: I hope your up to your neck in stocks and bonds. :)
        thehappypm 5y ago
        So much honesty in your 2 hour old account.
        uninteresting 5y ago
        Ha, here I was, unable to respond until hours later for having a dissenting view and your response is to use this ad-hominem attack for not adequately participating in your echo chamber. Complete lack of self-awareness, the perfect lackey. There aren't enough words to express my contempt for your lot. To return the favor, your experience with your dog, as you described, makes you sound like a soft-boiled egg that needs someone to manage your life for you. I can see why you feel this way now. and fuck you 'dang', you disingenuous double-dealing turd. Just in case you thought I forgot or didn't know what happens next on this platform.
- Smithalicious 5y ago
  This is getting downvoted, but if I'm wrong, then please do explain to me what is this argument supposed to mean? I mean the one that's usually very explicitly phrased as "the value of the dollar is backed by the US military", which gets said all the time when people compare the value proposition of fiat currency to cryptocurrencies. I've always understood this to mean "if people stop accepting the USD, the military will make them do so by force". But by all means, do tell me of what other ways aircraft carriers can be used to support the value of the dollar. I'm not even saying that this is factually incorrect (though I don't know if it is). I'm just pointing out the perversity of this argument. It gets brought up surrounding the current inflation debate all the time too. I don't like the casual-ness with which people can say what amounts to, essentially, "don't worry, we can always resort to deadly violence if we need to."
cheeseomlit 5y ago
That doesn't legitimize it in my eyes, it's still a scam. Ancient Rome was also the leading regional superpower in its day, that doesn't make it OK for them to debase their currency by filling the silver coinage with lead.

deleted 5y ago

[deleted]

xwolfi 5y ago

And that caused downward spirals when it started, centuries ago. Paper money is tempting people to print since it started, however societies have learned how to do it for a net positive, will USDT manage the same?

throw_m239339 5y ago

Well you're right, retail banks and central banks do operate fractional reserves. The problem is that Tether/Bitfinex claim every single Tether is backed by a dollar but they are lying. If they want to operate a fractional reserve, why not register as a bank legally?

cortesoft 5y ago

The money supply has to expand because our economy expands. If an economy keeps producing more things more efficiently, you need your money supply to also expand, or you will have deflation and the economy will grind to a halt.

cheeseomlit 5y ago
If you produce things more efficiently they should cost less, the money supply shouldn't expand to make sure their cost stays the same or more. Nobody can be entrusted with the authority to "expand the money supply" and not abuse it to the point of collapse. Case in point: https://fred.stlouisfed.org/series/M1 https://fred.stlouisfed.org/series/M1

jfrunyon 5y ago

It's also just as obvious that everyone will agree for the foreseeable future that USD can be used to buy things, do things. Given that people already disagree about the status of Tether, it's not nearly as obvious.