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Posted on 08/24/2026 1:09:28 PM PDT by GrootheWanderer
The buyback is a supply/liquidity fix aimed at a problem that isn’t primarily about supply or liquidity. In other words, the Treasury is trying to reduce long-term rates by restricting the supply of those bonds. But their rates have been rising (prices falling) in response to the budget deficit, heavy overall government debt issuance, a rising term premium, and persistently above-target inflation. Moreover, the bond sell-off is global: Long-end yields hit multiyear highs in Germany, France, and Japan. This sell-off suggests that the United States alone cannot fix its rate problem because that problem is not unique to the US.
(Excerpt) Read more at cato.org ...
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We are Argentina. The masses have NO clue as to how bad it’s going to get. The violence that will result will absolutely shock people. It will take a LONG time to recover, if ever.
“The problem is decades of deficit spending. We need to address that, but there seems to be no will by anyone in D.C. to do that.”
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That’s because there’s no political upside for really addressing the national debt because it can only be done by raising taxes. Not just a little, but back to the marginal rates of the 1950’s to pay for this 85 year war we’ve been waging.
I beleive there is a deeper stoy which explain tge timing & the need for Bessent’s actions. It is a 14 minute video but I foung it riveting. Hint Japan is involved
https://x.com/PrometheanActn/status/2091949739998920905?s=20
Apologies As my eyes go, more typos slip through.
“ We are Argentina.”
Well, not yet, but we’re getting there. However, we’re just one delayed interest payment away.
About the only good thing that would happen out of that is the Fed could buy back T-notes from panicked holders for pennies on the dollar and then burn them.
Bond buy backs aren’t new. Its been done many times before.
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