Becent's proposed “deterrence” bond is empty for repurchase and restructuring of the US debt

ON 25 AUGUST, ACCORDING TO FOX BUSINESS NEWS, KNOWN WALL STREET EXECUTIVES CLAIMED THAT THE UNITED STATES CHIEF OF FINANCE, VICENTE, WOULD “AT ALL COSTS” LET THE “BOND VIGILANTE” WHO WAS A LONG-TERM AMERICAN DEBT AND TRIED TO PUSH THE 10-YEAR UNITED STATES DEBT RETURN TO 5 PER CENT FEEL AWE. MEASURES MAY INCLUDE THE REPURCHASE OF UNITED STATES DEBT, AN INCREASE IN SHORT-TERM DEBT ISSUANCE AND THE “POSSIBLE CANCELLATION OF LONG-TERM NATIONAL DEBT, SUCH AS A 20-YEAR PERIOD”. ACCORDING TO THE SOURCE, THESE MEASURES ARE SHORT-TERM PROGRAMMES DESIGNED TO PREVENT FURTHER SHARP INCREASES IN THE RATE OF RETURN AND TO PREVENT HIGH INTEREST RATES FROM “STRANGLING GROWTH” AS THE MEDIUM-TERM ELECTIONS APPROACH. HOWEVER, WALL STREETERS ARGUE THAT THIS DOES NOT SOLVE THE UNDERLYING PROBLEM, WITH US DEBT REACHING $40 TRILLION, WHILE AI INFRASTRUCTURE IS INCREASING CAPITAL COMPETITION. IN THE LONG RUN, FISCAL AUSTERITY IS NOT EXPECTED TO TAKE PLACE DURING THE REMAINDER OF THE TRUMP ADMINISTRATION'S TERM OF OFFICE, AND THE PLAN REMAINS TO “EARNER OFF DEBT” THROUGH ECONOMIC GROWTH AND INCREASED TAX REVENUES. BECAUSE OF SUCH HIGH LEVELS OF DEBT, THE REAL SOLUTION WOULD BE TAX INCREASES OR AUSTERITY, BUT THIS COULD TRIGGER AN ECONOMIC DOWNTURN。