Treasury Is Buying Its Own Debt — Scott Bessent’s $40 Trillion Gamble

Episode 350, and apparently the milestone gift is discovering that the United States is now paying the mortgage with the credit card. Chris and Rajeil unpack Scott Bessent’s decision to supersize Treasury bond buybacks just as long-term yields hit 19-year highs and the national debt crossed $40 trillion. We go from Venice’s first bond market to the Treasury-Fed Accord, Japan’s yield-curve-control experiment, and why governments have a long, ugly history of trying to bully borrowing costs lower. Then there’s the timing: the accelerated program starts September 9, runs through November 4, and somehow manages to wrap up one day after the midterm elections. Pure coincidence, obviously. Add a Fed already fighting inflation, a tapped-out consumer, and markets beginning to question the price of American debt, and Episode 350 asks the uncomfortable question: when the smoke alarm gets too loud, are we fixing the fire—or just pulling the battery?

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🔗 Resources:

Treasury doubles debt buybacks as Bessent moves to steady bond market (CNBC)

Bond yields fall after Treasury announces surprise move to ease rising rates (CNBC)

Bessent says Treasury buyback operation could be more than $4 billion (CNBC)

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