USDT backed by USD doesn't mean it generate value out of nowhere brother, it just means your USDT can be exchanged back to USD and the USD that's used to collateral USDT usually put in reserves.
if the USD used as collateral is not in reserve, when someone tries to exchange back USDT to USD and money is nowhere to be found, the stablecoin will lost its peg.
I think you got your logic wrong here mate.
You all never take in account that in fact collateral is not excluded from circulation and until no critical demand on it from stablecoin holders this collateral can participate in economy partly or even completely thus multiplying a total money supply
All u can do here is to believe the coin issuer that they dont do it
And you should not cause have you ever though what is a whole purpose of issuing stablecoins with 1 : 1 ratio? There is no sense to do it if you are not going to use a collateral to make more money (put back to circulation) or to issue more coins than you backedAnd in my case you are sure that collateral is really excluded