01/09/2026
US national debt crossed the sobering threshold of USD 40 trillion on 18 August, double its 2017 level and months earlier than forecasters expected. For the US, interest on the debt now costs more than national defence.
But the catalyst for markets came 24 hours later when Treasury Secretary Scott Bessent announced the government would at least double its buybacks of long-dated debt to drag down 30-year yields touching 5.31%.
In the hours that followed, Bessent's attempt to soothe the bond market backfired. The USD slipped, and the debasement trade—the flight from paper money into assets no one can print more of, like gold and Bitcoin—came roaring back.
Data sources: Saxo; Committee for a Responsible Federal Budget (US); The Detroit News; CoinDesk; Bloomberg. Data current as of 25 August 2026.
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