He's issuing short term Treasury debt to buy long term Treasury debt and essentially remove those longer bonds from the market. There's a lot more demand for short term Treasuries than long-term ones. Yet the long-term bonds are the ones that affect mortgages and all other consumer and business loans. By taking some of that longer-term debt off the market, he hopes to lower those longer-term rates. There's really not a problem with short term rates.
So yeah you could say Bessent is buying old debt with new debt, but it's important to stipulate that it's the term of the debt that matters....
The only people who will suffer from this kind of debt are the million's out there just trying to get by with their current debt.Most can not and it just gets worse. This President is a bad joke made worse by the people who put him there and, still back him.The real reason America is in this problem just like P.T. Barnum said "There is sucker born every second".
Isn’t Bessent trading new old debt with new debt?
He's issuing short term Treasury debt to buy long term Treasury debt and essentially remove those longer bonds from the market. There's a lot more demand for short term Treasuries than long-term ones. Yet the long-term bonds are the ones that affect mortgages and all other consumer and business loans. By taking some of that longer-term debt off the market, he hopes to lower those longer-term rates. There's really not a problem with short term rates.
So yeah you could say Bessent is buying old debt with new debt, but it's important to stipulate that it's the term of the debt that matters....
The only people who will suffer from this kind of debt are the million's out there just trying to get by with their current debt.Most can not and it just gets worse. This President is a bad joke made worse by the people who put him there and, still back him.The real reason America is in this problem just like P.T. Barnum said "There is sucker born every second".
My goal with The Pinpoint Press is to make sure WE ARE NEVER THE SUCKERS! Let it be others who aren't here with us 😁
Buying back long term debt right now seems as useless as a screen door on a submarine. It truly doesn’t make sense.