Michael Howell on GENIUS Act: Stablecoin adoption could mean slower credit growth

In this conversation, Michael Howell and Pascal Hügli explore the late stages of the current liquidity cycle, noting how policymakers are working to extend it by injecting more liquidity. They examine how a weakening dollar supports global liquidity, the relevance of the MOVE index, and how Treasury Secretary Scott Bessent aims to shorten duration—despite criticizing his predecessor, Janet Yellen. The discussion also covers the role of stablecoins in the U.S. debt landscape, why they differ from the eurodollar market, and how their adoption could inhibit bank credit growth. Finally, they consider how these developments point toward a Modern Monetary Theory (MMT) framework. Chapters: 00:00 Intro 02:33 Liquidity Moves in Cycled 07:11 The Role of Debt in Financial Markets 14:02 Late Stage Liquidity Cycle 19:50 How Dollar Weakness Help Liquidity 26:04 Asset Allocation in High Liquidity Environment 32:34 Navigating Fiscal Challenges and Debt Management 36:08 The Role of the Federal Reserve in Liquidity 39:18 The Impact of Political Dynamics on Monetary Policy 46:46 The Emergence of Stablecoins and Their Implications 52:57 The Transformation of Banking and Credit Creation 57:27 Investing in a World of Monetary Inflation Follow Michael Howell: https://x.com/crossbordercap Follow me: Twitter - https://x.com/pahueg Nostr - npub1qhx7lnggpv64f0wt5xyjj7h90qh5ewu35pspr66sj8alc4gvcfjqqn04l8 Check out our sponsor Newhedge: https://newhedge.io/ Newhedge is an analytics and intelligence platform for all the Bitcoin data you need! Get 50% off your subscription by using the code "Signal"! 🔥 Bitcoin Book 👇 Order from Europe: https://www.amazon.de/dp/1967693013 Global: https://www.amazon.com/-/de/dp/B0F9W8Y283 Thank you for subscribing to our channel! We’re excited to have you with us! Liquidity #Stablecoins #MonetaryInflation #AssetAllocation #DebtRefinancing #FinancialMarkets #CentralBanks #EconomicStability #Collateral #InvestmentStrategies #GeniusAct #Genius #Bitcoin #BTC #Gold #InflationHedges #Hedges #MMT #FiscalDominance #Fiscal #Banks #CreditCreation Support the show