US Government’s $24 Trillion Debt Sale: A Total Fiasco

Yesterday’s calamitous attempt by the US government to sell $24 billion in 30-year debt marks a harrowing turning point. The auction spiraled into a fiasco, demanding dramatically higher interest rates to lure buyers, with primary dealers shouldering a staggering 25% of the purchase. This is more than a mere market blip; it’s a stark indicator of a deepening crisis. Major foreign holders like China, Japan, Saudi Arabia, and Russia are not just abstaining from new purchases, but also offloading existing holdings. With the government’s borrowing skyrocketing to $1.5 trillion in just four months, and another $1.5 trillion looming, the situation is dire. America now stands at the edge of a fiscal abyss, forced to offer increasingly higher rates to attract lenders, an unsustainable path leading to a potential economic collapse.