Scott Bessent’s bid to tame US borrowing costs knocked down long-term yields for barely a day. The more lasting market signal: the dollar weakened while gold and Bitcoin rallied, reinforcing a debasement trade narrative fueled by swelling US deficits and concerns over the direction of US economic policy. The divergence exposed a deeper predicament. Washington wants cheaper money even as inflation remains a constraint on the Federal Reserve. And it comes just as governments and companies are competing more fiercely for capital, from large-scale public borrowing to the vast sums pouring into artificial intelligence. https://www.bloomberg.com/news/articles/2026-08-21/bessent-s-bond-maneuvers-giving-global-debasement-trade-new-life

Scott Bessent’s bid to tame US borrowing costs knocked down long-term yields for barely a day. The more lasting market signal: the dollar weakened while gold and Bitcoin rallied, reinforcing a debasement trade narrative fueled by swelling US deficits and concerns over the direction of US economic policy. The divergence exposed a deeper predicament. Washington wants cheaper money even as inflation remains a constraint on the Federal Reserve. And it comes just as governments and companies are competing more fiercely for capital, from large-scale public borrowing to the vast sums pouring into artificial intelligence. https://www.bloomberg.com/news/articles/2026-08-21/bessent-s-bond-maneuvers-giving-global-debasement-trade-new-life

Source:https://x.com/staunovo/status/2091042366387810689