# @Eli5defi: The Return of Feudal Markets & S&P Standards

Source: https://x.com/Eli5defi/status/2004417411672617098
Kiwi News: https://news.kiwistand.com/stories/Eli5defi-The-Return-of-Feudal-Markets-and-SandP-Standards?index=0x694f90e39269d3a2ef9eb193d5584f392b5d8348921d2597fa86ff1401ee56fefd1bb7e5
Submitted by rvolz.eth on 2025-12-27 UTC, 2 upvotes, 0 comments

## Summary

The post by @Eli5defi, building on @arndxt_xo's thesis, argues that the U.S. has effectively moved onto an "S&P Standard," in which asset prices are the protected class and labor and the real economy absorb the shocks. It contends that wage growth is treated as inflationary while asset price drops trigger rapid policy rescue, which keeps the index stable but makes society brittle. The author sees crypto as an exit valve, pointing to Visa settling nearly $3.5 billion in USDC, SoFi launching a bank-issued stablecoin, and Bhutan holding $1 billion in BTC as signs that capital is building parallel financial pathways.

## Article

I think @arndxt_xo thesis is sharp and uncomfortable:

The U.S. has effectively moved onto an "S&P Standard."

In this modern feudalism, asset prices are the protected class (the Lords), while labor and the real economy function as the shock absorbers (the Vassals).

The system’s feedback loops have been rewired so that wage growth is punished as "inflationary," while asset price wobbles trigger immediate policy rescue.

Why this matters now:

— Volatility Suppression
Policy isn't designed to stop recessions; it's designed to stop disorderly asset repricing. This keeps the index stable but makes society brittle.

— The AI Paradox
As highlighted, the AI boom is currently benefiting hardware and supply chains first. For the numbers to work long-term, we may see massive labor compression, expanding margins while thinning the consumer base.

— The Crypto Hedge (and maybe why I am still bullish on crypto for long-term)
Amidst this "feudal" stagnation, the crypto market acts as the only distinct exit valve.

Last week, we witnessed significant shifts in institutional behavior:

- Visa settled nearly $3.5 billion in $USDC
- @SoFi launched a bank-issued stablecoin
- Bhutan held $1 billion in BTC.

These moves indicate that capital is constructing parallel financial pathways.

Long live Crypto and DeFi.