The $58 trillion debt spiral will force Bitcoin to explode faster than you think!!! | EP 1589

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Scott Bessent was forced to intervene in the bond markets again with a new program triple the size, but it did nothing. Actually it did the opposite of nothing. It's not looking good. So everyone is now wondering what is coming next, what is going on in the bond market and really what does it say about the macro situation? So let me start with some things that happened a few days ago, which are really setting the scene for what we're seeing currently take place. So as I've been telling you guys a while ago, it was about two weeks ago, we saw Scott Bessent do the yen intervention. We sold European bonds for to buy Japanese yens. That was an attempt to protect the Japanese bond market, because if the Japanese bond market breaks down, it means trouble for everyone else. Well, fast forward to a couple of days ago, and it looks like that literally didn't do anything. It looks as if, and this is coming from Bloomberg headline, that Japan likely eventually sold US Treasuries to fund record yen intervention. Now, at the same time, we saw a few days later that China is also likely selling US Treasuries. Though, there is an interesting caveat here, because Xi Jinping is going to meet President Trump in about two weeks. So, there seems to be this kind of rhetoric going around, that Trump and Xi Jinping have a really good relationship. They're going to work together. There's even been rumors that the US and China are going to partner in some form, but we don't have very much information on that. But what we do know for a fact is, there is most likely a lot of bonds, US treasuries being dumped on the market right now. And how do we know that for a fact? Well, this morning, guys, bond yields are absolutely ripping. And that is on the back of Scott Bessent's now triple the size of bond buybacks. You see here, Treasury is now expected to buy back 18.5 billion of their own debt this week, one of the largest weekly buybacks in history.

And if you recall, it was supposedly only going to be a 2 billion dollar Treasury buyback, and now it's at 18 billion. In fact, it went from 2 billion to 6, and then they shortly followed up, well, like, okay, we're going to buy 6 billion of long-term dated bonds, basically, with short-term dated bonds, and then, literally, the following day, they bought another 12.5 billion dollars of bonds. So, what does all this mean?

Well, it looks like there is serious trouble in the bond market, and Scott Bessent is trying to quell the chaos. And we got some interesting sound bites from Scott Bessent the other day that I think is why we're seeing the carnage currently take place today. All right. So, this one is from the Bloomberg Terminal. This one is actually interesting. This is something that we say all the time here, maybe not all Bitcoiners, but we usually paint this in the idea of like, look, hey, and actually, maybe I've been one of the people that's been kind of pushing back on this theory. Obviously, a lot of Bitcoiners have this idea of the fiat dollar melting down, that we are in a fiat apocalypse right now, and the dollar is going to hyperinflate, it's gonna lose its world reserve currency, but a lot of people don't really account for, as many people call the dollar milkshake theory, that yes, the dollar is a fiat currency, and yes, it is the world reserve currency, but it's still the shiniest turd in the toilet, okay?

There is going to eventually be a point where the world wakes up to hard money, it starts to move away from fiat money or the dollar, and the big question is what will the world move to? Will it move to a hard money standard? There's a lot of gold bugs out there that say, oh, we're gonna go back to a gold standard, we will start to really peg the global currency to gold. And China's actually been essentially making that bet. They've been selling treasuries and they've been sacking gold at an unprecedented rate. So China's making the bet that, hey, the world's gonna go back to a gold standard. There is a bit of reminiscence to China doing this a little while ago, decades ago, where they, instead of going to fiat, they went to silver and the world didn't move from gold to silver, it actually moved from gold to fiat. It almost feels as if history is not repeating, but it's often rhyming. So at this moment, China is obviously at least making the bet that they're gonna go to gold.