Tether is used as an intermediate in crypto transactions. You buy some Tether, use them in the transaction, and then sell them back. The money you buy them with is invested in US treasuries (about 75%), gold, GROY, cash etc., so they are fully backed by the USD in various forms. It used to be exclusively cash and UST. The genius is that you take money at no cost, and invest it in UST with a United States of America Government Guarantee of repayment, WITH INTEREST!!! The interest funds the eye-watering dividends to the half a dozen owners. $190bn of customer funded investments produces a lot of interest income, or, if you buy gold before the recent rise, capital appreciation. GROY? Just taking a position in a gold royalty company. First time I’ve seen on this forum someone concerned that the share price is rising because a company is buying their shares ….. gold company management can’t do anything right. Memo to gold companies: Never, Ever, let anyone buy a 15% share in your company. Gold bugs won’t appreciate it.
ferrett
Tether is just another form, digital created form without a government backing but private and could appear and disappear attached to equal dollar per tether and alternative place to park your money perhaps to slowly get people used to digital. It might be alright now to hold in the US because you can still redeem in dollars but apparently have been delisted in Europe apparently due to its business lack of transparency.
Yes tax funded and as in Europe as well. I can understand transparency but as far as government, taxation and what they do with our money look who’s calling for transparency. This scrutiny may continue with tether in other countries too including ours. . I personally don’t like the idea of make believe money buying up treasuries.
PM’s drifting lower in the overnights
No idea why. Oil is down $2, don’t know why that either. Rates are down near 4 bips. Dollar is up slightly, as is Bitcoin.
And of course, the SM futures are up nicely.
There’s supposed chaos everywhere, and yet markets act as though everything is fine.
If there wasn’t really all these wars and oil and diesel issues, would we even know it? I wouldn’t, I just know what they report from day to day.
I think we’ve entered the twilight zone.
goldie, well, maybe.
The US taxpayer is paying lots of money to Japan, China, Belgium, Hong Kong, Canada, India, Saudi etc. etc. Tether is the 19th largest holder of US treasuries, they are no different to any other holder. Well, except that they are a privately held company.
