The most creative addict in the world

Not legal advice It is a monthly column by Zachary Kelman, Cointelegraph’s general counsel. He is a practicing lawyer in New York, specializing in political, legal and regulatory issues surrounding Bitcoin, digital currency and blockchain technology.

For two decades, the President of the United States has been stationing troops in Afghanistan to support the fragile local government, whose mission is to contain the Taliban. Earlier this month, the U.S. military evacuated and the Afghan government supported by the U.S. military collapsed like a tent with poles removed. It is obvious to all observers that there is no fundamental change in Afghanistan, and the US military intelligence services must already know this inevitable reality. What is not clear is why the United States finally withdrew at this special moment.

The answer may lie in the increasingly powerful but often overlooked force that influences decision-making in Washington, DC: the risk of US sovereign debt. With 28 trillion U.S. dollars in total national debt, Unparalleled money printing With quantitative easing policies and decades of low interest rates, the United States has spent most of its currency ammunition in the past decade. This led policy makers to break the glass and release trillions of dollars in emergency expenditures, frightening US sovereign debt holders, who suddenly had more reasons to worry about the once unimaginable prospect of the collapse of US sovereign debt. President Joe Biden and the 117th U.S. Congress entered this void.

related: Quantitative easing, cryptocurrency and modern monetary theory

People would think that the obvious way to alleviate debtors’ concerns lies in the balance sheet, that is, raising tax rates or reducing expenditures. However, tax increases and budget cuts are tantamount to closing open bars when having fun at family gatherings. The winning political formula here is always an excuse—increasing taxes will disrupt voters and undermine market optimism, while cutting spending will prevent politicians from fulfilling their promises and reduce their chances of getting a gravy train. However, just like a smart addict, the United States can always find a way to reassure pesky national debt holders and debt holders that the United States is still “good.”

The end of the war in Afghanistan may not directly lead to a reduction in the military budget, but it does mark the end of the relentless foreign interventionist attitude that led to the United States after 9/11. By ending the war, the United States is actually telling the world that it has ended the interdependence that led to its addiction without having to give up cold turkey altogether.

Similarly, budget hawks claim that the arguably impossible encrypted tax reporting requirements outlined in the amendment were created The most recent U.S. Infrastructure Act This will result in the federal government getting tens of billions of dollars in “lost” revenue without having to raise tax rates. Because tax increases will send negative market signals that damage economic stability, and because trillions of dollars in spending without so-called “payments” send negative signals to prudent American debtors, this provides an opportunity for policymakers. Eat too. Threatening to turn the U.S. crypto community upside down and shake them up until the emergence of tens of billions of dollars—even if their actual unpaid tax bills are only a small part of it—can provide temporary relief to worried debtors, who themselves are likely to be Encryption newbies, not a disgusting burden of actual financial responsibility.

related: Let us be clear: Blockchain technology is the infrastructure

Anyone with close family members or friends suffering from drug or gambling addiction knows the difference between a real change in the habits of addicts and the superficial promises and decisions they use to hide their continued addiction. We know how important our support and optimism are, and we have been hopeful until we were burned a few times, because it is clear that no fundamental change has taken place. As old monetary policy tools become rusty and worn out, and the United States turns to crazy quantitative easing policies and unprecedented public spending, American debtors have every reason to hope that the country will find a way to move on, especially considering the dollar’s ​​value. Central position. Position in the world currency system. For the sake of the United States, let us pray that it can remain the most creative addict in history in the next few years-hope not to leave the cryptocurrency industry behind again.

This article is for general reference only, and should not and should not be regarded as legal advice.

Zachary Kelman Served as the general counsel of Cointelegraph. He is an attorney focused on the regulatory environment surrounding digital currencies and financial technologies, whether it is obtaining licenses and designing compliance policies to meet the newly enacted laws in the Philippines, or meeting with Caribbean regulators and formulating policies. Before co-founding Kelman PLLC, he managed Coins.ph’s compliance program. Zachary represents entrepreneurs and advises on best legal practices for their businesses in the financial technology sector.

The views, thoughts, and opinions expressed here are only those of the author, and do not necessarily reflect or represent the views and opinions of Cointelegraph.