U.S. Bond Sales Go HAYWIRE As Bessent Begins Unthinkable $3T Plan To Reverse Demand Collapse

Alright guys, so let's talk about US bonds today and how the treasury is walking blind towards a dangerous outcome. And that is money printing to fund the US government. Now to be fair, this isn't exclusively a Trump problem, though he isn't making it any better. It's also a big reason why Scott Besson is betting everything on crypto to save the treasury market. Now instead of scaling back US spending, Washington believes stable coins are the answer. It's bizarre but it shows that they are running out of options today. The federal debt keeps rising no matter what. This is critical to understand. Every time we enter a crisis, like the 08 collapse or the 2020 lockdowns, the slope keeps getting steeper. Now since 2000, the debt has grown by an average of 8% a year, which makes the debt pile simply unpayable at this point. Interest payments today are well over $1 trillion and climbing. Now you throw in dollar weaponization and the tariff war, everyone is getting really sketchy about holding US debt. Countries in the BRICS are afraid of confiscation, while other central banks are worried about debasement. So foreign demand is under siege, which isn't good when you realize the entire bond market is dependent on public investors. In 2000, only 60% of US debt was under the mercy of global markets. It's now at 80%, which means if an exodus happens and happens fast, the entire US economy could get destabilized in a hurry. Domestic investors in the US holds over 71% of the debt, so they will be the biggest backholders and this risks social instability as well. Here's the problem with market held debt. You cannot control all individuals, companies and foreign governments. They will head to the exits especially when it's not worth holding the bonds anymore. Now the chief concern is how Washington keeps flooding the market with debt. In order to fight this tariff war and industrial war with China, the US will have to borrow money to buy commodities. You need steel, you need copper to build all those chip plants and data centers, right? How else will the Pentagon get their weapons? US imports face horrific tariffs and this is causing prices across the country to shoot through the roof. Take US Aluminum for example. Now thanks to Trump's tariffs, prices have gone ballistic, hitting nearly $5,000 a ton. Those are levels higher than the pandemic shortage crisis. Trump forgot about the boomerang effect. When fighting an industrial war, you want cheap imports. He's getting the exact opposite and there's no way the US can stop buying. President and friends, we need to keep spending. They will keep buying up commodity companies whose cost of production is elevated. It means the In Q3, the US borrowed over a trillion dollars or issued a trillion dollars worth of bonds. In Q4, Besson will issue $570 billion more. And going forward, this amount will only increase as the trade war ramps up. Now if he was willing to give Argentina a $40 billion bailout to block In other words, the US is borrowing money from the world to buy up commodities. But the treasury is trapped here. The traditional way of borrowing money for 10-30 years through long-term bonds is simply not possible now. We have mass layoffs of over a million people so far. A few days ago, we reported on record bankruptcies in the United States. Over 650 large companies went under as well. So issuing more long-term bonds is near impossible. It will push the 10-year yield well above 4% which will doom every single borrowing rate in the US. Now despite the market asking Besson to issue longer-term bonds, he simply can't. He dodged the question and only hinted at gradual adjustments to issue long-term bonds. Translated, that just means, ladies and gents, we are screwed. We will continue issuing more short-term bills because there's no other alternative left. Today, T-bills or short-term debt makes up over 20% of the entire market. This is extremely risky and locks Besson into an issuance trap. It's important we understand this one. When you issue a 10-year bond, you only have to repay the bond in 10 years. For the US, they just refinance the debt by issuing a new 10-year bond. So the crisis is 10 years away. But if all your debt needs refinancing or payment every 30 days, you are in big trouble. Even if the Fed slams the Fed funds down to 0%, it's no longer just a matter of interest rates. It's the availability of funding. Basically, will there be any suckers or clowns around the corner willing to buy US bonds? Because at that point, the dollar will be plunging, the underlying asset of the bonds, the currency itself, will be worth much less. And here's how insane things have gotten. This next chart is going to blow your mind. It tells you how Scott Besson is trapped and why he needs to find a way out of this mess. The issuance of T-bills have literally gone vertical. Nearly $600 billion in a single week. Now imagine how insane that is. Every 4 weeks, the treasury will have to convince the market to lend them $600 billion more to keep the shell game going. The real threat is the refinancing volumes, the quantity of money. This is the real concern here. Over time, this amount is going to grow to a trillion dollars. Then it will How is the US going to find buyers every week or every month to get the money? Even if rates are zero, if no lenders turn up, nothing can be borrowed. China will definitely run away. Even Japan could buy less if every week, the treasury hits a funding crisis. The dollar could continue to fall. So what is Besson's play here? He is hoping for the He believes consumers will suddenly have a rise in real purchasing power. He is gambling that US growth next year will explode and everyone suddenly becomes much richer. And a big shout out to our sponsor today, Indigo Precious Metals. When it comes to buying gold and silver, I trust Indigo Precious Metals in Singapore. They have made investing in precious metals safe, fast, easy and simple for both small and large-scale buying. I have been stacking gold for over a decade now and I have learned two things when buying. You want to buy authentic gold bullion and you want to buy it at the lowest premium possible to stretch your dollars even further. And I am glad to say I found both of these at Indigo Precious Metals. Indigo Precious Metals is a leading retailer in Singapore. They specialize in physical gold, silver and platinum. They are my one-stop shop when it comes to buying bullion. Their prices are sharp and they have the best brands on sale and I can test the gold on the spot. So if you are looking to make your first gold purchase, Indigo Precious Metals is the best place to start. Whether it's 1oz or 1kg, this is the reputable dealer you are looking for. So take action today. Click on the link below and enjoy a discount on your first purchase with the code SEANFU. Start your gold stacking journey today. But this is borderline delusional. Interest rates on the long end might not come down. Furthermore, tariffs are raising the cost of living and US exports are still falling. So across the board, you have the recipe for even more unemployment and a wage crisis, a wage collapse. I just can't see Boomtown Charlie happening in 2026. And if it doesn't, Besson will be forced to rely on his final desperate gambit. It's not an ace in the hole, it's more of a Hail Mary pass that has a slim to none chance of succeeding. And Slim just left the building. Besson is back pitching the idea of stablecoins saving the US treasury market. Now according to him, stablecoins will grow tenfold and this will demand for US treasuries. He believes the stablecoin market will grow to $3 trillion and as a result, there will be an explosive demand for US bonds as a result. But before we continue, let's quickly define what a stablecoin is. It's not Bitcoin or crypto backed by gold. What Besson is referring to is a very specific type of cryptocurrency. Now stablecoins are cryptocurrencies designed to hold a steady value. In this case, the US dollar. So the value of the coin won't change and because it is tied to the dollar, it has to be backed by an asset. Now Scott Besson wants that asset to be US treasuries. In fact, stablecoins only buy short term T-bills if they have to because of redemptions. If they don't, the coins can literally implode. This is Besson's final fantasy, the ultimate dream. He will get a good excuse to issue more T-bills to relieve pressure on long term bonds. Just listen to how eager he is here. Now it's a very good story. It's the promised land that will solve all the problems of US spending won't it? The world, especially those that are unbanked, will rush in and dump all their currencies for US dollar stablecoins. Now the argument is that the world will just rush to transect in the coins but let's really understand why Besson's argument collapses on itself. Now stablecoin buyers are not structural or dependable buyers. Central banks and commercial banks are. Stablecoin buyers are also heavily impacted by the crypto markets and bitcoin. If we get a crypto meltdown, it will most definitely impact stablecoin holders. They could simply liquidate all their holdings. Then you'll see redemption spike through the roof. To get the dollars to pay back stablecoin holders, what must happen? Their underlying issuer will have to sell off their T-bill reserves for liquidity. We could have the exact opposite effect of what Scott Besson wants. He desires a constant demand stream for US bonds. But stablecoins are risk on money. The buyers are inherently fickle. At least many central banks today hold their bonds to maturity or they are simply too scared to dump all their holdings. But stablecoin users don't really care. Should a mass dump happen, we could have short-term yields suddenly spike up. Then hundreds of billions of dollars monthly will face a big refinancing crisis. Even if rates are slammed down to zero, it could spike up above 1 or 2% in a hurry. The US treasury market will be dependent on crypto cycles which is absolutely insane. Another problem is the size of the stablecoin market relative to the debt and deficits of the US government. There just aren't enough stablecoin users around. The current stablecoins, Tether and USDC, have around $260 billion in coins floating. Even if we 10x demand and assume a 100% reserve ratio, you have $2.6 trillion in demand for US bonds. The US needs to issue around $2 trillion per year in deficits and this amount will only continue to grow. Unless stablecoins keep growing by $2 trillion a year and more, it will be quite meaningless. You cannot possibly hope to fill this black hole and this vortex is only going to grow thanks to the trade war and the AI bubble. Now this plan is fragile at best. We still haven't talked about the threat of sanctions as stablecoins can be indeed punished. That aspect won't be diminished, in fact, it will only be enhanced. Scott Besson can always force issuers to freeze wallets associated with a particular country or restrict redemptions. US banks can also be banned from dealing with issuers as well. And these are just some of the simple ways. You can go even more complex than that. Now as long as you hold on to any dollar asset, you are at risk. So I can't possibly see the fastest growing region in the world, which is BRICS, adopting stablecoins to any serious degree. Now yes, Scott Besson has a dream, it's a beautiful dream, but it's still a dream. In reality, real demand for US bonds is collapsing. Central banks, the real structural buyers, are not adding as much anymore. As a reserve asset, gold has exceeded treasuries. $4.7 trillion versus $3.9 trillion. It's a big reason why the rush to find new areas of funding to prop up this house of cards is getting more urgent and urgent. This is where the real structural demand is. Gold buying is not gonna vanish. Stablecoins, however, is a coin toss at best. Now this plan from the genius egg sounds good on paper, but there are just too many assumptions here. But hey, maybe Besson knows something that we don't and we are all dinosaurs, we are all out of touch. As always, let me know what you think here. Can Besson escape his bond crisis and will stablecoins save the day for him? Let me know in the comments below. Stay safe, be sure to smash the like button and subscribe as we navigate through these insane times.