Everyone knows QE but you’ll soon know FINANCIAL REPRESSION because that’s what’s coming after what Bessent just did

As we all know by now Bessent announced that the US treasury will issue t-bills to take US long dated treasuries off the market in order to cap yields on the 10yr and 30yr treasury. This is financial repression on a small scale that is designed to act as a bridge until polices are put in place for the REAL FINANCIAL REPRESSION. As we all can see, yields are already rising again, so what Bessent did wasn’t nearly good enough. So what next? What will financial repression be? The government will create polices that force banks and insurers to hold MORE US treasuries in order to cap yields. So basically instead of the Fed buying US treasuries to cap yields the government will force banks and insurers to buy these US treasuries to cap yields. Why does this instead of QE? QE is off the table because inflation is still high. QE will only worsen inflation. Now what the Fed will do is LOWER RATES below the rate of inflation. The reason all of this has to be done is because there’s no way the US government can service its debt if yields are above 5%. That would result in a DEATH SPIRAL of the government needing to issue more and more debt just to pay its interest obligations. So financial repression is essentially inflating the debt away. Now the good news. What assets benefit the most during financial repression? Stocks but specifically high growth stocks, AI stocks, big tech stocks. Assets like gold and bitcoin will also do well since financial repression devalues the currency and makes bonds unattractive. This is currently underway now. The US government mathematically has no choice and there is no political appetite to reduce debt or deficits through either tax increases, austerity or a combination of both.