Treasury exports United States debt through stablecoins
- Treasury is replacing petrodollars with T-bill-backed stablecoins to absorb surging national debt.
- Foreign trade partners face forced adoption of digital dollars for essential commodity purchases.
- Autonomous AI agents will use stablecoins for payments, locking software networks into dollar demand.
The petrodollar is dying, but dollar hegemony isn't.
On September 5, 2026, macro analyst Michael Every outlined the shift on TFTC with Marty Bent. Treasury Secretary Scott Bessent is stepping back from long-term Treasury bond issuance, which threatens to drive up yields and strain defense spending. Instead, Treasury plans to flood short-term T-bills directly into stablecoin reserves. Bypassing legacy foreign banking institutions allows Washington to demand that global trading partners accept dollar-backed stablecoins for physical commodities.
"Rate cuts cannot refine fuel."
- Michael Every, TFTC: A Bitcoin Podcast
This strategy splits domestic borrowing costs from offshore yield buckets.
Every explained that damaged Middle Eastern refining infrastructure and persistent Persian Gulf conflict have created structural fuel shortages. Federal Reserve interest rate cuts cannot repair physical supply lines or build refineries. By exporting higher dollar yields through digital custody while insulating domestic re-industrialization programs, Washington aims to maintain currency supremacy amid rising global inflation.
Two days later on BTC Sessions, macro analyst Brent Johnson added a tech-driven vector to the thesis. Johnson argued that the burgeoning agentic AI economy requires continuous, 24/7 financial settlement. Traditional banking rails are too slow and expensive for high-frequency machine-to-machine micro-payments. Autonomous software agents will inevitably standardize on dollar-denominated stablecoins, boosting monetary velocity and anchoring demand for greenbacks inside global digital infrastructure.
"The constitutional republic gives way to an empire."
- Brent Johnson, BTC Sessions
The evolution from petrodollar to petro-stablecoin aligns with a broader shift toward what Johnson termed "Fortress North America." As post-war multilateral institutions crumble, Washington is consolidating regional supply chains and taking direct equity stakes in critical domestic industries. This cross-show consensus signals that crypto rails, once viewed as anti-state instruments, are being weaponized by the U.S. government to fund its sovereign debt.
The architecture changed, but the debt machine keeps rolling.
Source Intelligence
- Deep dive into what was said in the episodes
They’re Not Saving the Republic, They’re Building Fortress North America | Brent Johnson • Sep 7
- Stablecoins will serve as the native transactional currency of the 24/7 agentic AI economy, according to Brent Johnson. This massive digital utility entrenches global US dollar dominance while legitimizing foundational digital assets like Bitcoin.
Also discussed on this episode: (7)
War (1)
- Brent Johnson argues the military conflict in Iran is not a US planning failure but a calculated, long-term strategic action. While costly, the disruption imposes a multi-decade recovery burden on Iran rather than signaling the end of US hegemony.
Macro (2)
- Rising US Treasury yields contract global liquidity by devaluing the sovereign bond collateral held on central bank balance sheets. Brent Johnson argues this global collateral squeeze, rather than US bankruptcy, is the primary threat to the system.
- Scott Bessent designed the US Treasury long-end buybacks as a proactive debt-management tool to insulate thinly traded markets from passive-flow volatility. Brent Johnson notes Bessent's career history includes originating the famous 1990s trade that broke the Bank of England.
Diplomacy (2)
- The post-World War II rules-based order is ending as the US shifts to bilateral, America-first negotiations. Brent Johnson points to massive capital inflows as evidence of US strength, with the net international investment position shifting over ten years.
- Brent Johnson predicts the United States will transition into an authoritarian empire rather than cede global hegemony to China or the BRICS nations. Domestic citizens will likely accept increased state authority to preserve their existing standards of living.
Trade (1)
- The US is actively constructing a regional bloc termed Fortress North America by integrating economically with Canada and Latin America. Brent Johnson argues this strategy secures critical supply chains and resources while letting the US project power globally.
AI Infrastructure (1)
- Artificial intelligence has become a core element of national security in the great power competition between the US and China. Brent Johnson expects the US government to heavily subsidize data centers and infrastructure to win this technological race.
Marty Bent
#789: Stablecoins Are Replacing the Petrodollar with Michael Every • Sep 5
- Every suggests the United States could leverage dollar stablecoins backed by T-bills to capture offshore liquidity. This strategy would create a petro-stablecoin system, allowing the US to fund its budget and defense spending externally.
Also discussed on this episode: (8)
Models (1)
- OpenAI's announcement of artificial general intelligence capabilities represents a Manhattan Project milestone where machines can self-improve. Marty Bent notes that Astro 6 is marketed at 98 percent AGI, compared to Sol 5.6 at 7.8 percent.
War (2)
- Michael Every argues the United States always targeted Iran but wanted to delay major escalation until 2027. Instead, Russia is actively backing Iranian-led military efforts to divert Western focus away from the Ukraine war.
- Every expects the United States to escalate economically against Iran after the midterm elections. Concurrently, Russia may conduct gray-zone attacks against NATO or launch massive winter missile strikes to break the Ukrainian economy.
Trade (2)
- The Netherlands Scientific Research Council for Government Policy argues Europe must abandon its neoliberal trade rules. The council suggests pushing the renminbi down to three or four per dollar, or mirroring China with tariffs and capital controls.
- Under a return to economic statecraft, the United States government secures equity stakes in critical tech and mineral companies. These non-monetized stakes guarantee the government a seat at the table to prevent offshoring.
Inflation (1)
- Severe global diesel and refined product shortages act as a structural driver of inflation. Every notes that building new refineries takes five to ten years, meaning inflation remains structural unless the United States forces a kinetic peace.
China (1)
- Every notes that automation in China is driving massive industrial layoffs. The Washington Post reports that 350 million of China's 750 million labor force will soon work as gig laborers, while one-third of Chinese firms lose money.
Europe (1)
- European policymakers are targeting citizens' savings accounts to fund domestic infrastructure and industrial re-investment. These desperate measures reflect Europe's massive trade deficit with China and a total lack of global economic leverage.