Bessent understands one thing extremely well:
You cannot shrink a debt load this large without blowing up the system. You can only outgrow it or inflate it away.
Hassett understands political economy better than any Fed Chair in decades. Together, this points toward:
• A return to financial repression
• Liquidity engineering
• Growth-first policy
• Soft-cap on yields
• Implicit QE structures
• Treasury-Fed coordination reminiscent of WWII
This supports asset prices. It supports risk. It supports Bitcoin.
It does not support savers.
It does not support fixed-income holders.
It does not support austerity.
This would be a world where owning assets is survival, and holding cash is slow death.
