Arthur Hayes, co-founder of BitMEX, claims the United States is entering a new economic era. While many focus on Trump’s plans to supercharge defense and strategic industries, Hayes points to something crucial: the bill won’t be paid by Wall Street or taxpayers — but by stablecoins.
While Bitcoin and Ethereum stay out of the spotlight, stablecoins like Tether are set to play a central role. Quietly accumulating U.S. government debt, they’re enabling a new form of silent war financing.
America Adopts the Chinese Model: Guaranteed Profits Over Free Markets
According to Hayes, the Trump administration is moving toward a centralized funding strategy inspired by China. Instead of letting markets decide, the government guarantees profits in “critical” sectors — from semiconductors to rare earths to weapons. Banks, attracted by these guarantees, open the credit floodgates.
A real-life case? MP Materials — a rare earth metals processor — secured a $1 billion loan backed by JPMorgan and Goldman Sachs. The Pentagon guaranteed it would buy minerals at twice the Chinese market rate. It even became the company’s largest shareholder.
Credit Without Congress: A Backdoor Economic Engine
Trump’s model bypasses Congress. Pentagon officials can directly approve loan guarantees. The result is a self-sustaining system where banks eagerly fund anything labeled "critical." Politicians compete to land contracts in their districts. It’s a perfect machine for growth — and inflation.
But as Hayes warns, this leads to massive imbalances. Fiat creation outpaces real-world production. Inflation becomes inevitable. To mask the damage, the government can inflate financial markets — just as China did with real estate. In America’s case, the bubble will be crypto.
Crypto: A Political Weapon Disguised as a Financial Asset
Hayes sees the crypto market as a lever of political power. Credit growth has historically fueled crypto booms. When bank lending doubles, Bitcoin has historically surged up to 15×. Trump’s team knows this — hence proposals to integrate crypto into 401(k) retirement plans and eliminate capital gains taxes on digital assets.
This creates a powerful loop:
🔹 Fiat → Crypto → Stablecoins → U.S. Treasury Debt → Defense Spending
In this loop, stablecoins become the new war bonds.
$9 Trillion in Stablecoins? Fuel for the Military-Industrial Complex
If the total crypto market reaches $100 trillion by 2028, Hayes estimates that $9 trillion could flow into stablecoins. These funds, managed by issuers like Tether, are often invested in short-term U.S. Treasury debt — offering liquidity and yield.
This structure, Hayes claims, is “quantitative easing for the poor” — a backdoor way to finance war, energy, and critical industries without raising taxes or sounding fiscal alarms.
Conclusion: Trump Reshapes the Game, and Stablecoins Are the New Ammunition
Arthur Hayes sees Trump’s economic doctrine as a bold shift in policy. It’s not traditional monetary theory — it’s a controlled credit explosion aimed at boosting America’s strategic power. And stablecoins are now at its core.
This money doesn’t come from taxes — it comes from new debt. And that debt is quietly being bought by the crypto world.
In Hayes’ view, stablecoins are the new war bonds — a financial foundation for a new kind of state-driven capitalism.
#ArthurHayes , #TRUMP , #Stablecoins , #bitcoin , #DigitalAssets
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