The Wrong Message: Treasury Buyback Juices Debasement Trade, Boosts Gold and Silver -

Last week, Treasury Secretary Scott Bessent announced plans to buy back long-dated Treasuries to lower yields. The markets got a different message. The Treasury move reignited the debasement trade and sent both gold and silver sharply higher.
In this episode of the Midweek Memo podcast, host Mike Maharrey explains what the Treasury Department hoped to do and what message it instead sent to the markets.
Meanwhile, some people regret missing out on the last gold bull run. If you're one of them, Mike explains why it's not too late to get in on the next move up.
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Mike opens the show by asking the audience if they have any regrets. 
<blockquote>
"I think most of us do, right? You can’t get very far in life without making a bad decision, a miscalculation, or a good old-fashioned mistake. Woulda, coulda, shoulda, as my dad was fond of saying.
"I have plenty of regrets. I’ll give you one example – an investment regret. Around 2015 or 2016, I received a bitcoin for payment. I quickly sold most of it and bought a used laptop. At the time, it was worth about $400.
"Oops. 
"The thing about regrets is that they were totally avoidable. That’s why they’re regrets. We made a bad decision, a questionable call, a wrong turn.
"But regrets aren’t all bad. We can learn from them and avoid making the same mistake twice."
</blockquote>
So, why is Mike talking about regrets today?
<blockquote>
"Well, gold has shot up by 14.6 percent this month. Some folks may regret not buying gold on July 31 when it was just $4,045. Or maybe silver at $57.66. It’s up over 20 percent, trading today at just below $70. While we’re on the subject of regretting not buying gold or silver, I ran across a story the other day about British regrets. Today, I'll tell you more about that and also explain what happened in the Treasury market."
</blockquote>
After thanking the audience for listening, he highlights a Royal Mint poll revealing that one-third of adults in the UK regret not investing in gold in the past five years. 
Meanwhile, only 8 percent of UK adults kept any of their savings in gold, and only 3 percent held any silver.
Mike says he understands their regret. 
<blockquote>
"Over the last five years, the gold price has increased by nearly 150 percent, while silver has gained almost 200 percent."
</blockquote>
Here's where the story gets wild. 
<blockquote>
"Brits recognize that their purchasing power is declining. They see that both gold and silver could have shielded them from this monetary debasement. They regret making a bad choice by not investing in gold and silver. But they failed to learn the lesson.
"Only a quarter of poll respondents said they would likely put savings in precious metals over the next five years. Sixty percent said they would still choose to keep their money in a checking account.
"In the immortal words of Shoresy, 'So dumb!'”
</blockquote>
Mike points out that while it's reasonable to regret missing out on the recent bull run, it's not too late to cash in on the next one.
<blockquote>
"The opportunity itself is still right there in front of us. Because here’s the thing. In five years, people will almost certainly look back and yearn for $4,500 gold. That’s because monetary debasement will continue in both the UK and the good ol’ US of A. Both countries’ central banks have a 2 percent inflation target."
</blockquote>
Mike emphasizes that inflation and currency debasement are <a href="https://www.moneymetals.com/podcasts/2025/11/05/inflation-is-the-plan-004459">the plan</a>.  
<blockquote>
"My point is that gold and silver will almost certainly climb higher over the next five years because monetary debasement is more likely to speed up than to slow down. Here’s the thing about regrets. They’re avoidable. You just have to make the right decision the first time. But when you make the wrong call, let regret be your teacher. Don’t make the same mistake twice!"
</blockquote>
After highlighting a <a href="https://www.moneymetals.com/buy/specials">Money Metals special</a> on Liberty gold coins, he notes that investors need to learn to tune out the noise. 
<blockquote>
"I think some of the loudest noise in the marketplace is the U.S. Iran war. I’m not saying it’s insignificant. But as far as the precious metals markets go, I think it’s a short-term distraction. I say this because every time there is good news on the war front, gold and silver spike. That tells me the bulls are alive and well. They’re just waiting for the war to resolve so they can start running again. War news keeps a lid on the market, but in the long run, it’s noise. But the war will end, right? Then the lid will come off. Again, we see hints of this with every good war-news gold rally. And as it turns out, we may not even need the war to end to cut through that noise. The Treasury Department may have done that job for us."
</blockquote>
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Mike explains that the Treasury Department put its big fat thumb on the bond market with a buyback announcement. The Treasury plans to double its purchase of outstanding long-term Treasuries to drive down yields. 
<blockquote>
"It didn’t exactly go as planned. In fact, it might have backfired. Treasury Secretary Scott Bessent’s announcement that the Treasury would double its buybacks of long-term Treasuries did, in fact, push yields down…for about one day.
"Instead of stabilizing the bond market and pushing long-term Treasury rates lower, the move appears to have juiced the debasement trade. This is evidenced by the sharp, sudden leap in gold and silver prices."
</blockquote>
Mike emphasizes this wasn't the response Bessent was hoping for.
In fact, it appears to have exacerbated the situation and reignited <a href="https://www.moneymetals.com/news/2026/07/28/with-bonds-struggling-investors-turning-to-tangible-assets-like-gold-005096">the debasement trade</a> – an investment strategy emphasizing holding tangible assets such as gold, silver, and other commodities to protect against the decline of fiat currencies caused by monetary debasement.
Mike notes that Treasuries have been selling off because many countries are increasingly wary of holding U.S. debt. With <a href="https://www.moneymetals.com/news/2026/08/20/the-40-trillion-national-debt-in-perspective-005151">the national debt eclipsing $40 trillion</a> last week, and with U.S. policymakers giving no hint that they intend to address <a href="https://www.moneymetals.com/news/2026/08/13/trump-administration-runs-largest-monthly-budget-deficit-in-five-years-005135">the borrowing and spending</a>, America’s fiscal situation doesn’t inspire confidence. On top of the fiscal problems, the U.S. has <a href="https://www.moneymetals.com/news/2024/02/29/could-weaponization-of-the-dollar-as-a-foreign-policy-billy-club-accelerate-de-dollarization-003013">weaponized the dollar</a> as a foreign policy tool. This has made some countries even more wary about holding greenbacks.
We've seen this manifest in a very bearish bond market for the last several months. 
<blockquote>
"Bessent tried to frame the bond buyback as a 'liquidity intervention' to maintain 'market plumbing.' However, we don’t have a 'plumbing' problem, and the Treasury Department intervention doesn’t solve the fundamental issue. That’s clear from the quick rebound in yields after the announcement."
</blockquote>
Mike says the market's tepid response to Bessent's move reveals an ugly reality. 
<blockquote>
"Try as he might, Bessent can’t control the market. The government can intervene and move the needle temporarily, but it can’t override the underlying market dynamics."
</blockquote>
Mike argues that this increases the likelihood of Federal Reserve intervention in the form of <a href="https://youtu.be/ipaQAgOCJBk?si=mtaUrF70owfAmpix" target="_blank" rel="noopener">quantitative easing (QE)</a>. 
In fact, the central bank is already running QE-lite. It may have to ramp up its bond purchases since it has a big advantage over the Treasury Department. It doesn't need to borrow money to buy the Treasuries. It can create money out of thin air!
This is, <a href="https://youtu.be/lmvFyBBJORM?si=r8Inboee7MfJR37W">by definition, inflation</a>.
<blockquote>
"The bottom line is the U.S. government is losing control of the bond market and yields. Investors are no longer just reacting because yields go up. They are reacting to the reasons behind yields going up. That means transparent U.S. intervention isn’t going to soothe the market.
"This is a big problem for a country already shelling out over $1 trillion per year to service its debt.
"It’s also a big problem for you because when it becomes clear that the Treasury can’t control interest rates, the Fed will have to get more aggressive. A more aggressive Fed means looser monetary policy. That means more inflation. And that means the purchasing power of your money erodes even faster."
</blockquote>
Mike closes out the show by urging listeners to act now to protect their wealth by getting real money – gold and silver – by calling a Money Metals precious metals specialist at 800-800-1865. 
<h2>Articles Mentioned During the Show</h2>
<a href="https://www.moneymetals.com/news/2026/08/20/us-treasury-intervenes-in-bond-market-to-drive-yields-lower-005150">U.S. Treasury Intervenes in Bond Market to Drive Yields Lower</a>
<a href="https://www.moneymetals.com/news/2026/08/22/david-morgan-gold-is-winning-the-battle-for-monetary-trust-005155">David Morgan: Gold Is Winning the Battle for Monetary Trust</a>
<a href="https://www.moneymetals.com/news/2026/08/24/its-real-and-you-need-to-be-ready-for-it-005159">It's Real. And You Need to Be Ready for It!</a>

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