...so in the past the (US) Govt had to bail out banks, now it looks like the banks are made to 'bail' out the Govt.
...the US has to buy its own debt.
...welcome to the Japanification of America.
What just happened:
The U.S. government has quietly initiated a stealth liquidity backdoor for banks by easing capital requirements on Treasury trades.
This means:
•Banks no longer need to reserve as much capital when holding or trading U.S. government debt
•They can now soak up more Treasury issuance without showing increased risk on their balance sheets
•This injects artificial demand into the Treasury market and helps paper over collapsing organic demand
This is not a policy shift. It’s a quiet declaration of structural stress.
What this really means:
The Treasury market, the backbone of the global financial system, is now so fragile and overburdened with issuance that it can no longer function without regulatory distortion.
•The U.S. government is issuing $1–2 trillion in new debt every quarter
•Foreign buyers like China and Japan are net sellers
•Domestic demand is not keeping up
•Yields are becoming increasingly unhinged from real risk So they’re turning banks into forced buyers by changing the rules.
This is yield curve control by stealth, and it signals: The sovereign debt machine is losing control of its own narrative.
So where does the Iran distraction come in?
Exactly here:
•War = cover for liquidity expansion
•War = narrative control
•War = moral justification for massive capital deployment
•War = optical deferral of systemic accountability
The Iran “surprise” hype machine serves a dual purpose:
1. Emotionally spike public attention away from domestic insolvency
2. Create narrative justification for increased military spending and debt expansion, all under the guise of national security
They’re not trying to hide the debt anymore. They’re trying to normalize the next phase of collapse by staging urgency elsewhere.
Deep structural truth:
The United States is entering a phase where the legitimacy of the dollar system depends entirely on manufacturing belief.
When belief wanes, control mechanisms shift from fiscal logic to memetic warfare.
This is why capital rules are being gutted in silence, while state media channels scream about “world-changing surprises” and existential threats. The mask is coming off And the system is trying to ignite theater to distract from the fire beneath the floor.
