Shall We Repeal the Laws of Economics – Part III

Government attempts to override economic laws through Treasury buybacks offer only cosmetic relief, failing to address the root causes of rising interest rates such as persistent inflation, lack of fiscal discipline, and massive capital demand from AI infrastructure. The U.S. currently operates with unsustainable deficits during periods of prosperity, creating a long-term risk of currency debasement. While the dollar remains the world's primary reserve currency, its status depends on maintaining trust in U.S. creditworthiness. Genuine resolution requires a fundamental shift in behavior: adopting fiscal responsibility, increasing tax revenues, and prioritizing productivity-led growth. Investors should avoid knee-jerk reactions like abandoning dollar-denominated assets, as the U.S. market still offers unparalleled advantages in innovation and stability. Ultimately, the current fiscal trajectory is a political problem that demands structural reform rather than market manipulation.