There are seventy-six days until the very consequential midterm elections. Your hero is exceptionally unpopular, in spite of what you might be telling yourself, and his underling, Scott Bessent, well realizes he needs to do everything in his power to help. Thus, the power bottom of the Treasury just announced a DOUBLED of the quantitative easing program, plunging the nation even farther past its already $40 trillion in debt, all for the purpose of buying U.S. debt that no one else wants.
The effect has been immediately, as treasuries are soaring (I mentioned covering my TLT short and selling my TBT long yesterday):
The US dollar is getting killed:
Gold is up nearly triple digits.
And volatility is getting nuked.
By the way, in case you’re wondering how long this new completely politically driven buying spree is going to go on, I can tell you when it expires: ONE DAY AFTER THE ELECTION.
And if you want to get a good sense as to what the US Treasury is willing to do to the country to support his boss, I suggest you imagine what the chap on the left (Bessent, without his glasses) does to the chap on the right on a regular basis.
