This is who the two-party system plan on destroying the US republic

[Votto]

MSN

Former Treasury Secretary Henry Paulson warns US needs an emergency 'break-the-glass' plan if Treasury demand collapses​

Former Treasury Secretary Henry Paulson on Thursday urged U.S. policymakers to prepare an emergency plan in case demand for Treasurys breaks down — warning that a crisis in the government bond market could trigger severe consequences across the economy.

“We need an emergency break-the-glass plan which is targeted and short term on the shelf, so it’s ready to go when we hit the wall,” Paulson said in an interview with Bloomberg Television’s Wall Street Week on Thursday.

Paulson’s warning comes as investors grow increasingly concerned about the waning appeal of U.S. Treasury debt. Persistent deficits, heavy debt issuance and inflation worries have weighed on longer-term government bonds recently.

Paulson said a crisis in the Treasury market would differ in a crucial way from the 2008 financial meltdown, when the U.S. government still had enough fiscal capacity to step in and contain the damage. This time, instead of centering around the private sector, a Treasury crisis could hamper the government’s ability to finance itself.

In 2008, “as bad as it was,” the government had fiscal firepower to address the credit meltdown,” Paulson noted. “You can come in and clean up the mess.”

Nevertheless, in a public-debt crisis, “when you hit the wall and you’re trying to issue Treasurys, and the Fed is the only buyer and the prices of the Treasurys are going down and interest rates are up, that’s a dangerous thing.”

In other words, if demand for Treasurys drops significantly, investors may ask for higher yields before buying more. That would make it more expensive for the government to borrow, and those bigger interest payments would make the deficit even larger, which gives investors another reason to worry.

Still, Paulson said it’s hard for him to predict a timeline regarding when such a crisis might eventually happen.

“People say, ‘When are you going to hit the wall?’ I obviously don’t know — it’s impossible to know,” he told Bloomberg. “When we hit it, it will be vicious, so we have to prepare for that eventuality.”

In a statement Thursday night, the Paulson Institute clarified that Paulson was “clear that his concerns about the debt were not immediate and that he believed the U.S. economy remains the most resilient major economy in the world and is most able to withstand the uncertainty, including the impact of the war in Iran. He also noted that the dollar is indeed stronger in the wake of the current situation.”

The 10-year Treasury yield rose 2.9 basis points to end at 4.308% on Thursday, while the 30-year Treasury yield climbed 3.9 basis points to 4.929%.


Notice how he says when it happens, and not if.

 

[LordBrownTrout]

MSN

Former Treasury Secretary Henry Paulson warns US needs an emergency 'break-the-glass' plan if Treasury demand collapses​

View attachment 1245075

Former Treasury Secretary Henry Paulson on Thursday urged U.S. policymakers to prepare an emergency plan in case demand for Treasurys breaks down — warning that a crisis in the government bond market could trigger severe consequences across the economy.

“We need an emergency break-the-glass plan which is targeted and short term on the shelf, so it’s ready to go when we hit the wall,” Paulson said in an interview with Bloomberg Television’s Wall Street Week on Thursday.

Paulson’s warning comes as investors grow increasingly concerned about the waning appeal of U.S. Treasury debt. Persistent deficits, heavy debt issuance and inflation worries have weighed on longer-term government bonds recently.

Paulson said a crisis in the Treasury market would differ in a crucial way from the 2008 financial meltdown, when the U.S. government still had enough fiscal capacity to step in and contain the damage. This time, instead of centering around the private sector, a Treasury crisis could hamper the government’s ability to finance itself.

In 2008, “as bad as it was,” the government had fiscal firepower to address the credit meltdown,” Paulson noted. “You can come in and clean up the mess.”

Nevertheless, in a public-debt crisis, “when you hit the wall and you’re trying to issue Treasurys, and the Fed is the only buyer and the prices of the Treasurys are going down and interest rates are up, that’s a dangerous thing.”

In other words, if demand for Treasurys drops significantly, investors may ask for higher yields before buying more. That would make it more expensive for the government to borrow, and those bigger interest payments would make the deficit even larger, which gives investors another reason to worry.

Still, Paulson said it’s hard for him to predict a timeline regarding when such a crisis might eventually happen.

“People say, ‘When are you going to hit the wall?’ I obviously don’t know — it’s impossible to know,” he told Bloomberg. “When we hit it, it will be vicious, so we have to prepare for that eventuality.”

In a statement Thursday night, the Paulson Institute clarified that Paulson was “clear that his concerns about the debt were not immediate and that he believed the U.S. economy remains the most resilient major economy in the world and is most able to withstand the uncertainty, including the impact of the war in Iran. He also noted that the dollar is indeed stronger in the wake of the current situation.”

The 10-year Treasury yield rose 2.9 basis points to end at 4.308% on Thursday, while the 30-year Treasury yield climbed 3.9 basis points to 4.929%.


Notice how he says when it happens, and not if.

They're getting ready to confiscate and issue digital pennies on the dollar.