Why Bessent Blinked | Luke Gromen on Doubling of Treasury Buyback Plan to Tame Long-End Yields

Rising long-end U.S. Treasury yields signal a deepening fiscal crisis, driven by massive AI capital expenditure and government deficits that now consume over 100% of tax receipts. The U.S. government faces a debt spiral, forcing Treasury Secretary Scott Bessent to implement soft yield curve control through upsized bond buybacks. This environment necessitates a shift toward Hamiltonian economics, prioritizing domestic self-sufficiency and tariffs over traditional neoliberal trade. Gold is re-emerging as a vital neutral reserve asset, potentially serving as a mechanism to restructure the insolvent Treasury market. While AI-driven productivity gains are significant, they threaten the current tax base, further pressuring the government to maintain negative real interest rates. Ultimately, the path forward involves a fundamental devaluation of the dollar against gold and commodities to manage unsustainable debt obligations, signaling a long-term shift in the global monetary order.