Shall We Repeal the Laws of Economics – Part III

Marks argues Treasury's bond-buyback interventions can't fix rising rates without genuine fiscal discipline addressing deficits and inflation.

• Treasury's buyback gambit: On Aug 19 Treasury doubled long-dated buyback size to $4B per operation, then tripled it to $6B by Sept 9, yet 30-year yields still moved higher afterward.
• Root causes ignored: Marks attributes rising rates to 3.7% PCE inflation (vs 2% target), a ~6% of GDP deficit during 4% unemployment prosperity, and >$1T in projected net interest outlays exceeding defense spending.

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