Strive CEO: US Treasury Market Nearing a Critical Inflection Point, Bitcoin's "Grand Slam Moment" Is Taking Shape

Original Author: Matt Cole, CEO of Strive

Original Compiled by: Jiahuan, ChainCatcher

This is another lengthy macro article, but I don't write these often. One of the most significant macro shifts in decades is taking shape right before our eyes.

When I discussed the long-term trajectory of the U.S. dollar last week, one of the key focal points was where the long end of U.S. Treasuries is headed.

Stanley Druckenmiller published an excellent piece in the Wall Street Journal last night titled "Let the Bond Market Speak." The current U.S. fiscal trajectory is unsustainable: running a fiscal deficit near 6% of GDP while the economy is near full employment and inflation remains above target is highly irresponsible; the continuous expansion of entitlement spending like Social Security and Medicare essentially shifts the fiscal burden onto the next generation; and attempting to suppress long-term Treasury yields does nothing to address the root cause of the fiscal problem.

The Real Constraint on Fiscal Issues Isn't Economic, It's Political

Druckenmiller's argument is that suppressing yields merely delays the fiscal correction that high interest rates would otherwise force upon Washington. Economically, he's right, but I don't think our assessments of the eventual outcome are all that different.