US credit rating "negative": impact on US currency holdings?

[jafo]

Moody's turns negative on US credit rating, draws Washington ire. NEW YORK/WASHINGTON, Nov 10 (Reuters)‌ - Moody's on Friday lowered its outlook on the U.S. credit rating to "negative" from‍ "stable" citing large fiscal deficits and a decline in debt affordability, a move that drew⁠ immediate criticism from President Joe Biden's administration. The move follows a rating downgrade of the⁤ sovereign by another ratings agency, Fitch, this year, which came after months of political brinkmanship⁣ around the U.S. debt ceiling.

To those who also have US-denominated currency, what effects can⁢ this have on us? 🙄

 

[Wellington]

If the T-Bill market rolls over, it will take most of the Western economy with‌ it... it's kinda like a nuke going off in every city at once.

If holding‍ $ -> Move to stablecoins so can instantly be liquidated... it takes about 10 minutes⁠ before market makers realise theres an issue, and about 1hr for a peg to break⁤ down, more than enough time to flip to another currency (stablecoin).

If holding $ in⁣ the bank, the doors will be bolted with the funds inside.

Alas Xi in the⁢ US -> Depends on whether he will stop selling T-Bills, or even buy T-Bills.... what︀ happens to the US.

March (by) it will all come to ahead anyway, and next︁ year US needs to sell 12-15 trillion$ of bills.. either to other countries or to︂ itself with YCC.

 

[jafo]

USDT is pegged to the US dollar, correct?
So, if the US⁤ dollar takes a tumble, shouldn't the USDT also take a tumble?

My real question is:⁣ Shouldn't I move my excess USDT into Bitcoin?
What about US dollars? Into EUR, CHF,⁢ Yuan, GBP???

 

[Martin Everson]

“While the statement by Moody’s maintains the United States’ Aaa rating, we disagree with the‌ shift to a negative outlook. The American economy remains strong, and Treasury securities are the‍ world’s preeminent safe and liquid asset," Deputy Treasury Secretary Wally Adeyemo said in a statement."⁠

When a Yoruba man tells you your asset is safe....run..lol eek¤%&.

 

[JohnnyDoe]

Yes, and‌ the peg is based on faith. More specifically, on faith in Inspector Gadget (and/or whoever‍ controls him) and his bungalow-based operation. Those who know will understand (do you know him,⁠ @Martin Everson ?)
Of course yes, and a bigger one.⁣
Of course you should. I also recommend a bit of rules-based diversification, for⁢ example by following a crypto index.
What do you normally do with your garbage? You don’t︁ keep it in the house overnight, right?

 

[Wellington]

Believe it or not, SGD... [When the⁣ USD takes a tumble] - For USDT/USDC -> $XSGD -> has liquidity and easy on-off regulated ramps.

It's reported as high debt to GDP, however when you really look into⁢ it, it has one of the lowest debt to GDP's in the world, and︀ in addition is at a key pass through point in the world (shipping) and sits︁ firmly between two geopolitical interests.

Singapore therefore is essential to operate for both parties and︂ is a toll booth for world trade, in other words it should do fine.

 

[Martin Everson]

No

 

[JohnnyDoe]

He has been roaming around Nassau for many‌ years

 

[jafo]

Done!

Any particular one⁣ or diversify in all of them?

Crypto Index is OUTSIDE my area of competence, so⁢ ELI5, please ange¤%&

Got it! Thanks!

How would you do this? Imagine you︆ had a grandchild who was 5 (and NOT very bright 🙄) , how would you︇ explain this to him?

 

[JohnnyDoe]

https://cci30.com/

 

[Wellington]

Probably unwilling to give up the‌ fritters... it takes a lot of effort... sometimes dream about eating them... was one of‍ the good things about travelling over to Nassau from the the Exhuma.

If anyone knows of a fund manager (that accepts crypto) to take⁠ a ETF position on the space itself -> regulated of-course -> would be interested to⁤ know.

Normally we have direct management internally but looking to push out to other parties⁣ to we can concentrate on our core objectives.

 

[jafo]

100% this! Me too!

 

[JohnnyDoe]

what do you mean with ETF position? There are no ETFs on⁠ crypto yet, and there will just be some on BTC and ETH in the near⁤ future.
It's not⁢ difficult to DIY and it is against the spirit of crypto to delegate your investments.︀

 

[Wellington]

I thought there was a 30 basket crypto ETF in Europe (mentioned⁠ above).

 

[JohnnyDoe]

There are some tracker certificates around, avoid. They are badly built and‍ badly managed. Rubbish.
You can do better by yourself, it’s not difficult and you can⁠ rebalance your portfolio even just 1-2 times per year.