Treasury Yields Soar as Ballooning U.S. Deficit Worries Wall Street (opens in new tab)

> This present issue has been caused by decades of bad fiscal policy by both parties

So I completely agree with this statement, but I completely disagree with the metric you've chosen to illustrate it.

"National debt" only exists due to the martingale of the Federal Reserve neutering the government's own monetary sovereignty. If we need to have an inflationary currency, then the new money should be spent by Congress on deliberate public goals - it's another tax.

You can tell "national debt" is a dodgy metric because it combines two very different things into one scary-in-the-context-of-household-finances thing. The portion of "the debt" that is Treasuries held by the Federal Reserve is the lesser bit of monetary creation that was actually spent for public goals, in spite of the fake "fiscal responsibility" narrative. It is moot as far as debt goes - nothing actually happens if it compounds to infinity.

The other portion of "the debt" that is held by private/foreign owners is the government functioning as a bank account of last resort, and could very well just be at the central bank instead.

What we currently have is a dog and pony show to pretend that we don't have this centralized fountain of money, in order for the financial industry to keep getting the first cut of low interest loans (which have mostly gone into bidding up the asset bubbles).

Clinton balanced the budget back in the 90’s. Biden and Obama’s terms were almost entirely defined by picking up economic disasters the previous administration caused. (2009 marked the beginning of the housing crisis, bank defaults due to deregulation and occupy wall street. 2021 was mid pandemic, after Trump spent years printing money with his zero interest rate stuff and tax cuts. He also fired the US funded team that China relied on for early pandemic detection and response.)

So, claiming this problem is bipartisan is nonsense. I’ll blame the dems for lots of stuff, but wildly inflationary fiscal policies and intentionally destructive economic policies aren’t on the list.

But how is it in our interest to make it worthless? There seems to be this continued rhetorical touchstone framing "the debt" as some looming problem that will need to be reckoned with, as if people are thinking of it as household needing to pay off a credit card bill. But in reality, if the United States's debt went away then there would no longer be such thing as a greenback - our currency IS ENTIRELY government debt. I'll repeat that again - the government's debt is our money supply. And despite the continual monetary inflation, it still has been holding its value decently well. So where exactly is this desire to destroy the government debt (aka destroy our currency) really coming from, then?

I mean, being born rich makes it way easier to fail upwards.

I like Stephen Miran, I always like people who are (relatively) honest

> CEA Chairman Steve Miran Hudson Institute Event Remarks

https://www.whitehouse.gov/briefings-statements/2025/04/cea-...

And they would have lost a record increase in U.S. assets across the board, including the US dollar, which should have gone down if the problem was money printing.

It’s rare to have such a clearly evident case of cause and effect. We know why yields are going up. Because investors don’t believe the U.S. government can control their budget deficits.

The recent rising yields have little to do with money printing from 4-5 years ago.

It is probably not going to be a big bang, but a slow fizz.

The rest of the world will probably not let the usd be the reserve currency, if the US does not show that it is able to manage that.

This is what happens when you let delusional bankers run things.

Monetary policy fails in low interest rate environments, and you get chaotic whipsaws thereafter which grow with time. You can find reference to this if you know where to look as far back as the 1930s.

Greedy corrupt blind individuals who have managed to infect leadership win so much that they lose everything.

We are getting a front-row seat to the specifics described in the socialist calculation problem, and it won't stop with just the US. This type of fire keeps burning until the fuel is out.