Since QE didn’t work, and only created an even bigger hyperinflationary speculative bubble; since QT isn’t working either, destroying employment and production while worsening hyperinflation; the Biden Treasury Department has now come up with an even worse idea: buy back its own older debt, in order to urgently inject liquid funds into the financial speculators, at the same time the Fed steps on the brake with rising interest rates.
This is exactly what the new Liz Truss government in the United Kingdom just did a couple of weeks ago, which led to a near blow-out of the British financial system, and market chaos that is threatening to spread to continental Europe.
MarketWatch website admitted as much in an Oct. 15 article: “The proposal comes after the Bank of England was forced to step in with an emergency program to temporarily buy its government debt and to give U.K. pension funds more time to unwind soured bets. The volatility erupted as global central banks have worked to fight soaring inflation by ending easy-monetary policies that prevailed for much of the past decade.” The U.S. Treasury, they confessed, is talking about “buying back some of its older debt to help stave off market dysfunction.”
MarketWatch felt compelled to ask: “Is a U.K.-style debt crisis brewing in the U.S.?” (https://www.marketwatch.com/story/this-is-not-qe-or-qt-this-is-none-of-those-why-the-u-s-treasury-is-exploring-debt-buybacks-11665775104)
