$40 TRILLION IN DEBT, BORROWS HALF A TRILLION IN 3 DAYS, $1.36 TRILLION IN INTEREST, AND NOW BESSENT WARNS OF AN ENERGY SHOCK

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Scott Bessent Just Warned The Fed Of An Energy Supply Shock: This Is A Really Terrifying Warning For The Markets

U.S. Treasury Secretary Scott Bessent has warned of an energy supply shock and urged the Federal Reserve to keep an “open mind” on interest rates.

That warning comes at an extraordinarily dangerous moment for the global financial system.

U.S. Debt has reached $40 Trillion with Treasury yields being at record highs. Oil is elevated above $100 despite reassurances that oil is flowing through strait of Hormuz to pre-war levels.

And the Federal Reserve faces an increasingly uncomfortable choice.

Fight inflation and risk crushing the economy OR tolerate inflation and risk losing control of the bond market.

America is on course to spend more than $1 TRILLION annually in interest payments… just servicing its debt.

READ THAT NUMBER AGAIN.

Every 25bps hike by the Fed increases interest expense by almost a $100 Billion. That means refinancing pressure is a serious vulnerability.

Japan could become the trigger for a global liquidity shock.

BoJ and Finance Minister have warned that they will not hold back any longer from protecting their own economic interests after Scott Bessent held them from liquidating their $1.4 Trillion in U.S. Treasury holdings. He even went on to expand Fed’s FIMA facility to Japan, dump dollars and euros to prop up the yen.

A liquidation from BoJ could literally collapse the debt market through the yen carry trade unwinding.

Japan’s@yutokanzakireal warned that the “allies”, which is the U.S., is finding a scapegoat like AI, cyberattacks or oil crisis to collapse the current economic order.: SCOTT BESSENT JUST CONFIRMED IT‼️

All financial crises are engineered by the central banks, IMF, BIS and G-SIBs.

They’re planning something far bigger this time because the condition is worse, not better.

The U.S. is borrowing and refinancing more than $500 billion in just three days. This week, we discuss what that pace means for the dollar, why gold gets sold when investors need cash, and the risks building in AI stocks. We also look at gold’s return to global trade as countries find ways to settle outside the dollar.Thank you for listening to the McAlvany Weekly Commentary. The objective of McAlvany Weekly Commentary is to provide investors with valuable monetary, economic, geopolitical and financial information that cannot be found on Wall Street.

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