https://x.com/SternDrewCrypto/status/2091971936696041498
THE U.S. TREASURY HAS ANNOUNCED TO START AN EMERGENCY $1 TRILLION BOND BUYBACK OPERATION
The U.S. Treasury Is Quietly Admitting The Bond Market Is Breaking. The Government’s $950 Billion Treasury General Account Emergency Fund Is About to Be Used as a Bond Market Bailout.
The U.S. government borrows money by selling bonds. When people get nervous about all the debt, they demand higher interest rates (called “yields”) to keep lending.
Right now the 30-year yield (the interest rate on the longest bonds) has shot up to levels we haven’t seen in almost 20 years. That means borrowing is getting extremely expensive for the government, businesses, and even your mortgage and credit cards.
This is the ongoing bond market crisis.
Last week the Treasury got so worried that they suddenly announced they would DOUBLE the amount of old long-term bonds they buy back every time (from $2 billion to at least $4 billion).
Buying their own bonds is a way to try to push those high yields back down and calm the market. They even called it a “Treasury Twist.”
NOW they’re going even further: reports say they might use almost $1 TRILLION sitting in the government’s cash account (the Treasury General Account) to fund EVEN BIGGER buybacks.
That’s like emptying the emergency savings account just to keep the bond market from blowing up.
When the government has to raid its own cash pile and frantically buy its own debt just to stop yields from exploding… that’s not normal.
If this doesn’t work and yields keep rising, the cost of America’s massive debt could spiral out of control. Higher rates everywhere. Bigger deficits. More panic.
This is how bond markets start sending warning signals that something is seriously wrong.
Yuto also revealed that Bank Of Japan discussed a worst-case scenario where dollar loses its reserve status due to loss of creditor’s trust.
Japan dumping their U.S. Treasuries holdings would trigger that catastrophe.Quote
Yuto 
Translated from Japanese
The Bank of Japan is paralyzed, unable to act,
The Bank of Japan has discussed the worst-case scenario.
A collapse of the dollar, or the loss of its status as the key reserve currency, could trigger a situation far surpassing the Great Depression.
Japan and the United States
https://x.com/SternDrewCrypto/status/2091971936696041498
