US Treasury Buys Back $142M in Debt — Here’s What It Means for Crypto
The US Treasury conducted a debt buyback operation focusing on Treasury Inflation-Protected Securities value as much as $500 million, selecting November 13, 2025, as a part of ongoing efforts to handle the nation’s ballooning debt disaster.
The transfer comes amid mounting warnings from monetary heavyweights, equivalent to Ray Dalio, about America’s fiscal trajectory, with the federal government now spending 40% greater than it takes in, whereas crypto advocates place digital belongings as potential aid mechanisms.
The buyback focused TIPS maturing between February 2040 and February 2055, with main sellers submitting gives by the Federal Reserve Bank of New York’s FedTrade system.
The operation is positioned as a debt administration technique, as complete US debt approaches $40 trillion, a threshold that has elicited intense debate about sustainable fiscal coverage and various monetary programs.
Dalio Warns of ‘Economic Heart Attack’ Within Three Years
Ray Dalio escalated his debt disaster warnings, stating the US faces “an financial coronary heart assault” except the federal deficit drops from roughly 6% to three% of GDP inside three years.
The Bridgewater founder outlined a self-reinforcing cycle in which extreme debt throughout downturns leads nations to print cash, devalue their foreign money, elevate inflation, and finally spawn political extremism as residing requirements collapse.
“We are working with a $7 trillion spending and a $5 trillion greenback consumption, we’re spending 40% greater than we’re taking in, and it is a persistent downside,” Dalio defined in a current Fox Business interview.
He in contrast accumulating debt service funds to “plaque in the arteries, squeezing away shopping for energy,” warning that the federal government should promote $12 trillion in debt, together with $9 trillion in maturing obligations, $1 trillion in curiosity funds, and $2 trillion in new borrowing.
Dalio’s November 5 analysis additionally highlighted further considerations about Federal Reserve coverage, suggesting QE measures whereas reducing rates of interest into an rising bubble represents “stimulating right into a bubble” moderately than the historic sample of “stimulus right into a despair.”
With AI shares already displaying bubble traits, unemployment close to lows, and inflation above goal, he questioned whether or not present financial easing veers towards debt monetization.
Consumer Debt Reaches Breaking Point
American households face unprecedented monetary stress as scholar mortgage delinquencies exploded to 14.3% in Q3 2025, the very best degree ever recorded, whereas auto mortgage delinquencies hit 3% and bank card delinquencies reached 7.1%.
The Kobeissi Letter reported shoppers are “drowning in debt” regardless of comparatively low unemployment charges.
The disaster intensified following the expiration of scholar mortgage aid packages, with severe delinquencies leaping 13.5 share factors year-over-year as missed funds reappeared on credit score studies.
Mortgage delinquencies climbed to 1.3% transitioning into severe delinquency, the very best in eight years, whereas car repossessions surged previous 1.7 million final 12 months in opposition to a report $1.7 trillion in excellent auto loans.
Financial analysts warn that the wealth hole has reached extremes, with the highest 10% of earners accounting for 49.2% of complete US spending in Q2 2025, the very best since information assortment started in 1989.
The pending resumption of wage garnishment for scholar mortgage defaults threatens to divert billions from client spending, as almost 2 million debtors might see as much as 15% of their paychecks seized.
Economists Clash Over Debt Consequences
While Dalio’s warnings dominate headlines, economist Steve Keen challenges the mainstream debt narrative, arguing that governments that management their very own foreign money face basically completely different constraints than households or corporations.
Keen emphasised that banks create cash after they lend, making credit score an addition to combination demand moderately than mere transfers between savers and debtors.
President Trump intensified coverage debates by saying a “tariff dividend” of at the very least $2,000 per American, doubtlessly distributing over $400 billion to roughly 220 million adults incomes beneath sure revenue thresholds.
The announcement drew instant comparisons to 2021 stimulus checks that preceded inflation surging close to 10%, with critics questioning huge handouts whereas shares hover close to report highs and complete US debt climbs towards $40 trillion.
What Does America’s Debt Crisis Mean for Crypto?
Trump positioned crypto as fiscal relief, stating that it “takes plenty of stress off the greenback,” whereas Senator Cynthia Lummis is advancing Strategic Bitcoin Reserve legislation, seeing it because the “solely resolution” to offset the National Debt.
The administration views crypto as a viable hedge in opposition to mounting nationwide debt.
However, market observers stay divided, with some speculating that elevated stablecoin focus might divert consideration from Bitcoin accumulation methods regardless of general constructive regulatory sentiment towards digital belongings as debt options.
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