Title: Secret QE is Part of Reset: Treasury Will Use Stablecoins to Flood System with Cash
Show: The Daniela Cambone Show (ITM TRADING, INC. YouTube channel), host Daniela Cambone
Guest: E.B. Tucker (editor, The Tucker Letter; author of "Why Gold? Why Now?")
Date: 2026-09-11
URL: https://youtu.be/Ws9NoDRncWs
Length: 28:28
Note: YouTube auto-transcript pasted by Stephen. Fillers (um/uh, stutters, contentless "you know"/"like") removed; wording otherwise verbatim. Auto-caption garbles corrected: Ding Daniela Cambon -> Daniela Cambone, Eie/Evie/Ees -> E.B., descent's/Scotty B -> Bessent, Worsh -> Warsh, drunken Miller -> Druckenmiller, Katherine Austin Fitz -> Catherine Austin Fitts, Mami -> Mamdani, genius acts -> GENIUS Act, hyperlid -> hyper-liquid, Jim Kramer -> Jim Cramer, USDcoin -> USD Coin. Every (mm:ss) cue kept in place.

(00:00) Welcome back to the Daniela Cambone Show. You saw the headline earlier this week. The Treasury Department to buy back six billion in longer-term debt. That's triple the normal level. That's the headline. Now, sit with it for a second. When the government starts buying its own long-term paper at three times the usual clip, what are they actually telling you? That the market is functioning or that the long end of the curve is starting to look like a room nobody wants to stay in? Because that's what a buyback is. It's not charity.
(00:29) It's not housekeeping. It's the issuer walking into the market and saying, "Hey, we'll take that off your hands." Triple the size, not double, triple. So, why today? Why the long end? Why now when the official story is still that everything is orderly, professional, well telegraphed, and under control? Here to break it down for us, E.B. Tucker of the Tucker Letter.
(00:53) E.B., so good to be back with you. >> Great to see you. It's been too long. >> It's been way too long. >> Yeah. And yeah, we saw this headline coming out earlier this week, but I think there's more to the story than meets the eye. And hence why I was like, we got to get E.B. on. Headline is simple. Treasury will buy back 6 billion in longer-term debt.
(01:12) That's triple the usual size. When you read that, what does E.B. Tucker actually hear here? >> I'll tell you this makes complete sense to me. I mean, there's this thing going on right now where you've got a Treasury Secretary that has a plan and it's a pretty good plan and everybody sort of thinks about the country like it's a little hardware store or something and they're like, "Oh, this is just some horrible hyperinflationary events coming." It's not true.
(01:40) It's actually not true. And what's happening here is you've got this new era that's kicked off. And what this guy's doing is he's managing longer term rates down. And he realizes that he's got a constant flow of short-term demand for Treasury bills. And where that comes from is the fact that we are transitioning into a new monetary system right now.
(02:03) It's happening. It's already happening. And you're probably missing it because you're reading poorly written newsletters and watching negative content on YouTube. But what's happening is that you already got this stablecoin movement underway >> and you've heard about it before like Tether and USD Coin and all this stuff and it doesn't make any sense to you.
(02:22) Similar to it didn't make any sense to me. I'll be the first one to tell you that when I read about stablecoins I thought it was the dumbest idea I'd ever heard. Why would I buy a digital token that was worth a dollar when I could just have a dollar? But what I didn't realize at the time and I've now come to understand pretty clearly and be interested in is that our new system is going to be where you park your dollars and you get stablecoins and you trade within an ecosystem that takes stablecoins. Tether's the biggest one. I don't
(02:50) know what's going to happen with Tether. I mean, they're going to try to raise money. All these things are going on. It's fine. USD Coin, you can buy the... We own that company in the newsletter, the Tucker Letter. We have a portfolio there and we own that company. It's very interesting what's been happening there.
(03:06) >> The little secret here, the footnote here is that these companies have to buy certain assets with your dollars. So, you give $100,000 to the stablecoin. They sit on your $100,000 while you interact in a system with the stablecoins, which you're going to do more and more. In fact, there's 140 banks and financial institutions that are forming a stablecoin called OpenUSD right now.
(03:34) It's going to come out towards the end of the year and they are going to trade within their own system. So JP Morgan's going to pay off something at Wells Fargo for you. They're going to use OpenUSD as the stablecoin. This is going to be all over the place. There are 400 billion worth of stablecoin dollars right now.
(03:51) There's going to be many, many trillions. And the Treasury Secretary himself has said there's going to be many trillions. Now, what that means is with the GENIUS Act and all these things that you've heard about is that they have to buy tons of 91-day or less duration T-bills. That means the Treasury Secretary's got this unbelievable amount of money coming into his system with T-bills, which has never really happened before in this way because we've never had stablecoins before.
(04:26) So, we've never had a situation where I give my dollar to the stablecoin operator who just sits on the dollar. They can invest the dollar, like they get to keep the money from the treasuries. They can buy stocks. They can do all these different things. And there's rules and all this stuff, but it's essentially like a hedge fund that's trading with our money.
(04:48) And you're not going to see less of this. You're going to see more of like 10 times as much. Okay. So, the Treasury Secretary has a plan. It's a good plan. I mean, I'm saying it'll probably work. You could debate the merits of it but for a minute let's just say maybe he's right. >> So okay interesting because I just had Catherine Austin Fitts on, this conversation will come out Monday, where she basically says we're going to see stablecoins, well it's already here but fully implemented as of early
(05:22) as next 2027. >> It's happening now. >> Yeah. So now this is making sense. So you're saying it's being funded by the stablecoins in order to make this happen, this new system. >> Because what happens is let's just say you're going to interact in some ecosystem where you need the stablecoin because it's faster settlement, whatever, just pretend like that's what you're going to do.
(05:51) So you take your $100,000 and you buy USDC Circle or Tether coin or whatever. It doesn't really matter what you buy. That company sits on your $100,000 almost like a bank but without the same regulation and without all those drippy eyed people that work at the bank also. They don't have any of those people.
(06:12) They actually don't have many people at all. They sit on your $100,000 and they buy things like treasuries and all these different things with that money. That's what they do. So essentially, you never ask for your money back. You never say, "I'd like to have my hundred grand back." Nobody really does that. And I know that because the stock that we have in the newsletter, that's the second biggest stablecoin.
(06:33) There's not really many options right now, by the way. I mean, there will be some more, but we're not going to buy the world's smallest stablecoin. I mean, we're going to buy the biggest stablecoin we can get because this is a situation where the biggest stablecoin operator is sitting over there at the Treasury talking to the Treasury Secretary, they're not on the bulletin board stock or something, right? So this is going to be where they take this, like Tether's got like 180 billion or something worth of your money
(07:02) that's just sitting there and they can invest this money. So let's say they buy T-bills for 3.8% and they make like 7 billion dollars a year. 7 billion dollars a year for doing nothing except for issuing you a stablecoin so that you can trade in and around these different systems which by the way you will do because Wells Fargo will tell you you can't pay your mortgage unless you use OpenUSD coin.
(07:30) That's going to be their coin, right? So there's a Stripe and everyone's going to have this and so they're getting in on the game too. >> Okay. Okay, wait, hold on, cuz I'm going to have Tether coming on the show. But how did they get all this money? >> Okay, so Tether was the first one and nobody really figured this out in the beginning, but there was a lot of people that were saying they wanted to trade crypto and they needed a faster way to settle this because you could not really just
(08:00) go to the bank and wire the money. You couldn't really operate in both settings. You had to sort of first buy Tether and then with Tether you could do your crypto transactions. This is going back several years ago. And so Tether kind of became the first, I don't want to say mainstream, but commonly known stablecoin.
(08:24) And then right >> the second biggest stablecoin, Circle >> what happened with this coin is this was a little bit more organized in the sense that you had some people from venture capital groups in California and all this different stuff. Tether was always a little bit on the edge. Okay.
(08:42) So I mean fine but what I'm saying is the system is now organizing itself where there's more connected US players getting involved. It's not just going to be one of these. The Treasury doesn't really want one of these things. That's the thing that's interesting is that the Treasury wants many of these things so that the ecosystem is hyper-liquid for some reason.
(09:06) That's what they want. >> Okay. Why, I want to go back to your point where you say you think this is a great plan that >> I think it'll work. Let's just say, obviously great is sort of a matter of opinion but I think it'll work is my point. I mean I think the Treasury Secretary, I've listened to the guy talk in person before he was Treasury.
(09:32) He's not exactly an idiot. So, I mean, I think this plan, like when he comes out on TV yesterday and he sounds like Dennis Rodman collecting foul balls or something in the paint at night and he's like, "This is my house and if you trade against me, it's going to hurt.
(09:51) " He's probably telling you the truth. You know what I mean? The guy is not a stock >> promoter. Okay, for the viewers at home, they're thinking, "What's the endgame? What's he looking to accomplish?" Yeah, but I mean the guy has a plan to sort of manage the economy in his way which, so did Yellen, right? I mean we live in a managed system.
(10:15) I mean that's what you and I have been talking about for like 10 years. I mean this is not raw capitalism. I mean if it was raw capitalism it would be a lot nastier. I mean this is a managed system. Now, for 25 years, 20 years, let's say, we managed it using sort of real estate leverage, controlling interest rates.
(10:34) If you notice, what happens to interest rates is sort of not exactly the most important thing anymore. Do you notice that? It's like, >> right. Well, that's why I'm saying >> that's sort of over. >> That's what I'm saying. It feels to me there's two different narratives now happening between the Fed and what the Treasury Secretary is looking to do.
(10:53) I mean, if you read between the lines of what Warsh was saying in Jackson Hole, he was saying, "We don't want to use the gimmicks of the past." Yeah. >> That's right. Aka QE. >> That's right. >> But now you're talking about liquidity flooding. So, it's just >> Correct.
(11:11) But if you remember QE, now the Fed has gotten smaller. Since after everybody was afraid they were going to get the flu, the Fed got to like 9 trillion and now it's like in the sixes. So, I mean, the Fed has gotten smaller while everybody is wringing their hands that there's going to be some awful thing that's going to happen, but the Fed relatively speaking has been sort of pretty tame.
(11:33) And so, what you're seeing is the old way of QE. What happened with the QE was they bought bonds from the primary dealers who made a little bit of money and it sort of liquefied the system and everybody borrowed against their house. That's sort of done. But the thing is there's tons of money.
(11:51) There's so much money all over the place floating around in the United States. It's sort of wild when you think about the numbers, the sheer amount of money. 25 years ago we didn't see situations like we see now. You read these headlines of what things trade for and what's happening.
(12:10) There's a lot of assets, there's a lot of money, there's a lot of stuff moving around. So, what's happening here is they're basically taking this excess cash and funneling it into this new stablecoin system, which keeps a bid under short-term treasuries and allows them to slowly manage long-term rates. That's just their plan.
(12:31) I'm just saying it might work. And so, instead of saying the world's going to collapse, which it's probably not going to collapse, I think it's better to say let's get in on this. I mean, if you fought the last 20 years of QE and housing and all these different things, I mean, you really wasted a lot of time.
(12:52) Basically, things sort of worked out fine at the end of the day. Life goes on and this is probably going to work. Now, after this, there'll be some other thing, right? Forget about what happens in like 2035. I'm talking about between here and 2030. This is really clearly happening.
(13:10) I think there's ways to make money. I think the ways to make money are stuff that people are just looking straight at and ignoring. I mean, if you go on YouTube on most of these financial channels, the entire screen is collapse, collapse, collapse, collapse, collapse. That's all people want to hear about. But at the same time, they're like, I got to make some money before the collapse, which is pathological.
(13:31) I mean, >> it just doesn't make any sense. There's probably not going to be a collapse. The thing is that most of these people that are hyper negative are probably just not going to make any money because they're just going to fight reality the whole time. And what I'm saying is when the Treasury Secretary tells you what he's doing, it's probably going to work.
(13:49) That's what's happening. And my thing is you should make some money because what do they really want you to do in Washington? America is a system where we need you to keep going. We need you to keep working and paying tax. We need you to keep investing and making money. We need you to keep spending so people can go to work and pay more tax.
(14:07) And it's this loop. We need you to stay in that loop. So, we need things to keep going up in value. That's why when people cry about inflation, it's like, what are you crying about? You like it when your house goes up in value. You like it when your stocks go up in value, but you don't like it when butter costs more.
(14:21) The whole thing needs to keep getting bigger. And you should get bigger with it instead of standing to the side and throwing rocks at it and complaining all the time. The real winners are the people that make money, spend the money to live a good life, and then go make some more money.
(14:37) And that's possible. I mean, that's what we do in the newsletter. We're not sitting around waiting for collapse with buckets of dried food and stuff. We're not doing that. That's not a party. That's not a party I want to go to. >> I know. But not everyone. This was a long conversation, but the middle class is being eaten out and it's easy to say go out there make more money and then your butter at eight bucks doesn't become a problem. You hear what I'm saying? Like
(15:06) you know the criticism you're going to get for that, right? >> Yeah. But here's the problem. The people that criticize the most are always the people that then think that they need to catapult themselves into some new altitude and they go buy junk stocks that go to zero because they're scams.
(15:24) The people that are real winners are like, "Look, I'm going to work. I'm going to make some money. I'm going to make my money, make some money. I'm not trying to go from being an hourly employee at Taco Bell to flying private. That's not what I'm trying to do because that's probably not going to happen." So, >> but it's all imaginary prices, E.B.
(15:40) If your $1 million house in Toronto for example is now $6 million but you don't have a buyer and you can't get out, what's the point? >> Who cares and put any number on it? >> Correct. So the thing is that the way to combat that is actually quite easy. What happens is that if you get your head right about the whole situation, let me give you an example.
(16:03) This is a kilo bar. Okay. So I'm sure you know a good place I could buy another one of these. So the thing is that when you have something happen >> maybe it's a bonus, maybe you made a little tiny bit of money in the market. Let's say you made a thousand bucks in the market and let's say you took $50 of the thousand and bought a little bit of gold with it.
(16:24) And people are like, "No, that's not enough money. I'll never get rich that way." Okay. Yeah, but you know what? That's how you do it. That's how I did it. I'm not as young as I look. When something happened, I put a little bit here. I put a little bit here. I put a little bit here. Sometimes something big happens.
(16:38) It's great. Sometimes something's... I bought an apartment in New York that I wanted for 20 years. I had some good things happen. I bought an apartment. It's a horrible investment. I mean, you know that, you pay cash for the apartment. It's a terrible idea.
(16:53) But the thing is, I'm investing in my life. So, you got to look at it differently. People are always like, "I'll never get rich unless I do something insane with my money." And it's like, you're probably going to lose the money. I mean, you have to look at this like it's a distance race and you can definitely compete in this race.
(17:12) You can definitely compete. Once you see the race for what it is, things just get better and better. I'll give you another example. The S&P is up 12% this year. We have three cybersecurity stocks in our portfolio at the newsletter. They're pretty big. The three stocks together are up average 45%.
(17:32) One of them is down and two of them are up. Average. That's almost four times the S&P 500. And people write me emails complaining about that. They're like, I need more. And it's like, what are you trying to do? I mean, what kind of world do you live in where you've got all these Warren Buffett books in your Amazon cart and you're looking at four times the S&P in the year with fairly large companies and you're like, I need more.
(18:01) Sometimes you're going to get more. There have been times that I've made huge percentage gains on an investment. You cannot plan that. You can't decide I now want to go make huge gains. I'm going to start that at 9:00 tomorrow. It doesn't work that way.
(18:21) What works is having good habits. That's what works. And so when you look at what are you going to buy, when you look at the stablecoin thing, you can absolutely play ball on the stablecoin thing, there are companies that are becoming more valuable every single quarter in this stablecoin thing.
(18:37) And if you want your money to grow, you would own that. If you want your money to disappear, then you would buy some microcap stablecoin pink sheet stock that's not going to ever go anywhere that used to be a uranium stock or something. That's what most people do. That's what most people do. And then they say, I don't like E.B. Tucker because he's rich.
(18:58) But it's like, you don't really know that I'm rich. You don't really know that. You don't really know anything. And the reason you don't know anything is because you don't want to learn anything. You just want to sit around and complain. And so, you're never going to amount to anything. And people that are the opposite are like, I want to learn about stuff.
(19:15) I want to have a good time. And I want to live a fun life. And that's what I started doing 25 years ago. And it's been great. I mean, there's been highs and lows, but it's been great. And people could do that. You can read the Tucker Letter. You can start today. >> It's like, "Dear E.B. Tucker, welcome to New York. I hate you cuz you're rich.
(19:34) Love Mamdani." >> Yeah. >> What are the terror attacks? I mean, bad timing on that. >> Okay. Let's get back to Scotty B a second. Okay. And his mind frame because you're on it. Okay. Yeah. >> We're almost getting to the big point here I want to make. This was a huge decision he made.
(19:56) He was like, "We got to do this." So, when he was staring at that, was he backed into a corner? I mean, he's looking at the US having a demand problem for duration, supply problem, credibility problem. What was he looking at? Is it the 40 trillion in debt? What was he looking at that was like, we got to do this? >> No.
(20:15) What are we going to do about tomorrow? That's what he's looking at. I mean that's how sophisticated people plan, they're like what are we going to do for the next chapter? I mean this is a new era. We're not going back. That's why when people talk about tech stocks are going to blow up like it's 1999.
(20:30) It's not true because it's not 1999. >> It's not pets.com. I mean there are going to be companies that turn out to be pretty worthless. But what I'm saying is when you start utilizing new technological tools you're not going back. I mean, you're not going back to balancing your checkbook by hand.
(20:50) You're not going to do that. Life moves on and it changes. And people like Scott, they look at this thing and they're like, "What are we going to do about tomorrow based on what's happening today?" Like when Bernanke and Greenspan and these guys started out with this QE thing, it was not the same world. The Fed balance sheet was 800 billion.
(21:12) There were some different issues back then. If you remember that TARP thing where they were begging Pelosi for the money, that was like 700 billion. I mean that's nothing. Think about that now. The world gets bigger, and you should get bigger with it.
(21:29) This guy's plan is what do I want the world to look like in 2030? I mean it's like I already conquered certain parts of life and now I'm going to leave my mark on the Treasury. I'm not just going to go in there and manage Yellen's Treasury idea. I have better ideas than Yellen and I'm going to implement my ideas.
(21:45) I'm going to utilize the think tanks. I'm going to utilize the resources that I have and I'm going to plan for 2030. That's what this is all about. You're going to see more stablecoins. You're going to see money markets looking dangerous and money going into stablecoins. You're going to see positive press about stablecoins.
(22:01) You're going to see the bank tell you that it's more convenient, it's cheaper, and it's safer. That's going to be the key word, safer. They're going to tell you there's going to be less scammers. They're going to tell you to do the right thing and transition to this and we'll give you a squishy ball or something with the bank logo on it.
(22:15) You're going to hear this stuff over and over and over again and you're going to go along with it. But what I'm saying is as a person that wants to make more money, you should maybe not fight all this stuff so much. Some of this stuff is going to work. And if you fight it the whole time complaining that you're not rich enough and life's not fair and you can't do this because other people have it better than you or something, nothing fun is ever going to happen to you and people that are smart are going
(22:42) to get away from you because you're just never going to go anywhere. And you can change this right now. What I'm saying is the guy's telling you what he's going to do. He's telling you exactly what he's going to do. And it's like okay. I mean sure, why not? I mean the gold, the thing about this gold, I love gold.
(23:04) I mean my book about gold is like the only book. >> Why Gold? Why Now? >> It's so easy to read. It's just so easy. But the thing is the gold rally happened. It's not that it's not cool to own gold now, but gold is not really the thing at this moment that is where the next action is.
(23:29) It's just not. I mean tomorrow if I have an investment gain of a million bucks, I might go buy $50,000 more gold, but I would buy 100,000 of Bitcoin. And the reason I would buy a little bit more gold is because gold will always be a part of a balanced life for me. As a man, I'm a manager of wealth. That's what I am.
(23:50) Ever since I was at a much lower level, I always looked at myself as a custodian of whatever was around me at the time. So I see myself as being a manager of whatever is around, from real estate to stocks to whatever. So my job is to manage that money. It's not really my money. My job is to manage it.
(24:10) And that's my mentality because it keeps me from being emotional. And what I'm telling you is if a million came back from an investment, right? I have this investment I wish I never made in trailer parks with this guy that overhyped these things. And the thing is, I think it'll be fine, but if that came back tomorrow, sure, I'll buy 5% gold.
(24:31) I'd buy 10% Bitcoin. Because what's going to happen is that as this 2030 plan comes in, as the plan that Bessent's telling you about comes in, you're going to slowly realize that Bitcoin is really, really interesting and you're going to feel like you're slowly living in this digital box where everything you do is monitored and tracked and you're going to be like this is freaking me out a little bit and I should probably have some Bitcoin because Bitcoin is the most interesting digital currency there is. I
(25:02) mean nothing else is like it. And so what I'm trying to tell you now is that when you and I did the Why Gold, remember I wrote the book when it was like 12. I know >> I remember this stuff. What I'm saying is we were having these chats and people were like I don't understand. And it's like you will understand and the price will be higher.
(25:22) Do you get what I'm saying? So what I'm saying about the Bitcoin is you will understand and the price will be higher. >> We need a part two. We need a part two. But my counterargument to that is I think the reason we had seen the pressure on Bitcoin is people were struggling with the use case of Bitcoin and maybe we'll come back and vote.
(25:45) We can have a separate, hold up, hold up. >> But the gold part, you have Scott Bessent who loves gold. He is close with Druckenmiller. You have Kevin Warsh who, anyone who's close to him knows he's a gold bug. And then you have these central banks doing these, look what the Dutch just did.
(26:08) No, we want the gold back in case of crisis. They keep buying gold. Everyone's buying gold. You can't discount the gold part. >> You can't discount the gold part, E.B. >> It's all about >> I'm not talking my book here. I think you might be downplaying the gold part. >> What I'm trying to say is that I love owning this stuff and I don't think there's gigantic upside.
(26:34) I think there's about as much upside as my New York place. >> Fair. Okay. >> And if I got new money today, I would buy a little bit more of this and I would buy twice as much Bitcoin. And there is no use case for Bitcoin. It's not going to be used. >> Okay. >> Everything else is going to be used, by the way.
(26:56) All the stuff that came from it is going to be used. The stablecoins wouldn't exist today if there wasn't originally a white paper about Bitcoin, but they're not the same as Bitcoin. >> They have almost nothing in common with Bitcoin. >> People really miss this. You know what I know is coming on. >> The Tucker Letter is going to tell you all about it.
(27:16) And yesterday's issue was amazing. You should read it right away. >> We're going to lead people to the Tucker Letter and of course E.B. Tucker, bestselling author of Why Gold? Why Now? See, you forgot how much you love speaking with me, E.B. >> I love it. Yeah, we should do in person. We used to do in person.
(27:36) Remember in the old Jim Cramer studio, we used to do it. Yeah, >> I know. Wall Street. I know. But I know you got... Well, when you're in New York, just ping me and >> Okay. Okay. And we'll meet up cuz >> I love it. >> Yeah, we like each other and I like your company. I like your thoughts and >> I like being challenged.
(27:55) So, thank you and thank you for bringing your perspective to my audience, E.B. We'll see you soon. Okay, >> let's do it again. All right. >> Absolutely. And thank you all for watching. More coming your way. Stay tuned.