The American ruling class is about to be blocked by the very system they have built. Arthur Hayes writes in his latest essay Buffalo Buildingthe rise of artificial intelligence, the collapse of US dollar hegemony, and the full development of stubcoin eliminate the need for debt-filled university graduates chasing the work of fame.
According to Arthur, the reliance on lifetime payments to repay “valuable credentials” made them exactly that useful. But now he says “American Gots Dat Ai,” and the elite will be replaced by machines that do not require an Ivy League degree or a six-figure bonus.
Arthur compared US Treasury Secretary Scott Bescent to the silence of the Lamb Killer and gave him his new nickname, “Buffalo Bill.” Not because he’s peeling people, but because he’s trying to kill the Eurodollar system, an offshore financial ghost network that’s been out of control in the US since the Cold War.
Arthur says he doesn’t know how much money lives in the Eurodollar system or where it will flow. But one thing is clear. None of them are about buying his financial obligations. So he is trying to push for a new plan to force that capital into a chain of stubcoins that supplies it directly to the American debt engine.
Bessent targets Eurodollars and dumps risks into stablecoins
The United States allowed the Eurodler system to flourish decades ago due to strict capital controls and Cold War politics. Over time, it created a mountain of offshore dollars ranging from $10 to $13 trillion. Arthur calls it a “force to consider,” but Buffalo Bill says it is calculated.
The plan is to take that money away and re-rout it through dollar-supported stub coins like tether USDT, which behaves like a narrow bank. These stubcoins accept dollars, buy short-term Treasury bills, and pocket yields. Deposit $1 million will earn you USDT in USD1 million. Tether invests cash in government risk-free debt. that’s it.
Arthur explains that Bescent doesn’t need to raise interest rates or fight the Fed. If the Stablecoin issuer needs to earn a return, he will buy anything that purchases Treasury debt, regardless of the yield. “The Stablecoin publisher will be a price sensitive buyer for Buffalo Bill Bessent’s Dogshit Paper (expletive) size,” writes Arthur.
This will allow Scott to take control of the entire US frontend and make the Fed completely irrelevant. If Powell refuses to play the ball, Bescent will only turn around him.
Even foreign governments can’t stop it. Arthur says that if Bescent tries to block a stubcoin, he will fight back against a country like the Philippines. If President Bonbon Marcos is against Meta or its payment system, Scott can retaliate by freezing offshore wealth for his family.
“I don’t think Bonbon is itching round two,” writes Arthur, reminding readers of Imelda Marcos’ Rico Trial on New York Real Estate.
America’s Global Control Plan integrates finance, technology and sanctions
At the same time, social media giants like WhatsApp are now in their wallets. Arthur imagines a world where everyone in the Global South receives and sends USDT through these apps.
“The central bank has effectively lost control of its money supply,” he says. VPNs, addictive UX, and Trump management protections mean regulators will lose. He argues Trump has already threatened tariffs on the EU for attempting to block US tech companies over privacy and competition laws.
Arthur calculates that global Southern deposits and $34 trillion in capital from the Euro-poor Europeans are currently holding hold. If even that chunk moves to a stubcoin, Bessent will get the buyer base it needs to keep printing the debt. Arthur writes: “It either puts dollars on the skin or gets sanctioned again.”
Arthur believes that when this flood hits stablecoins it will be poured straight into the defi app. First, there is staking. Fernando, a fictional Filipino click farmer, bets 1,000 USDT on PDAX with a yield of 2%. He regains PSUSDT, an interesting version of the token.
That psusdt is a collateral for defi. He can trade it, borrow it against it, and use it in derivatives. When he becomes unstable, he receives 1,020 USDT paid from the tethered Nim.
Next comes the expenditure. Arthur backs the ether. “The customer experience is the same whether you use Amex or Ether.fi Cash Card,” he writes. He believes $ethfi can be 34 times higher than its current level, based on the predicted growth in stablecoin vault and revenue ratios drawn from JP Morgan’s filing.
Arthur ends his essay with yet another warning that President Trump has no interest in cutting spending or financial restraints. Scott Bessent is planning to push Stablecoins as fast as possible, and tech companies like Zuckerberg and Musk will spread them all around the world.
“No officer will try to stop him,” Arthur writes. He says Americans should expect new headlines soon. It is a law that promotes Eurodler surveillance, forces foreign governments to open markets for US technology, and allows Stablecoin issuers to park all reserves in US banks or T-builds.
