To The Moon

This is ​a completely new macro setup right now: 

We are seeing QT happen while US Treasury yields drop, the Japanese Yen stabilizes, and bond yields/stock markets rally. But instead of a broad-based pump, this rally is rewarding actual cash-flowing giants printing record profits.

Once the market starts aggressively pricing in a September pivot, rate-sensitive plays are gonna fly. Gotta get ahead of the crowd before the real move happens. 📈

This is exactly why I'm so bullish on rate-sensitive stocks right now. Loading up and buying aggressively and steadily. 📈

Of cos the risk is there.... 

$Upstart Holdings, Inc.(UPST)$  

$Affirm Holdings, Inc.(AFRM)$  

$Robinhood(HOOD)$  

$Oracle(ORCL)$  

$NVIDIA(NVDA)$  @Optionspuppy  

​Here is how Bessent is pulling it off:

​1. Saving the Yen to Save the US Bond Market

​The Problem: The Yen was crashing hard, putting massive heat on Tokyo.

​The US Risk: If Japan (holding over $1T in US Treasuries) had to panic-sell its bonds to defend its currency, US bond prices would have tanked and yields would have exploded sky-high.  

​The Play: Bessent stepped in with joint currency interventions to stop the bleeding before it wrecked the US treasury market.  

​2. Lowering Treasury Yields via the FIMA Loophole

Instead of letting Japan dump US debt on the open market to get dollars, Bessent pushed to upsize and use the Fed’s FIMA Repo Facility.  

​How it works: Japan pledges its US Treasuries as collateral to borrow dollars straight from the Fed. They get the cash to support the Yen without selling a single bond. Zero upward shock to yields.  

​Plus, the Treasury is adjusting debt issuance (pulling back on long-term 30-year bond supply) to take pressure off long-term interest rates.

​3. Managing QT & Keeping Banks Buying

Even with the Fed doing Quantitative Tightening (draining liquidity), the goal is to make sure commercial banks and big investors can smoothly absorb sovereign debt without triggering a liquidity crunch.

​The Bottom Line: By combining foreign exchange backstops, repo tricks, and smart supply management, Bessent is trying to decouple massive government deficits from runaway interest rates—protecting the broader economy from a credit squeeze.

The Inflation & Rate-Cut Playbook: How Bessent Threads the Needle 📉🎯

​When it comes to taming inflation while pushing for lower interest rates, Bessent relies on a very specific set of arguments to convince the market and pressure the Fed:

​1. Core Inflation is Actually Cooling (The "Team Transitory" Take)

​The Argument: Even when headline inflation spikes due to external supply shocks (like oil volatility and geopolitical conflicts driving up gas prices), Bessent treats those spikes as temporary noise.

​The Core View: He points out that underlying core inflation (excluding volatile food and energy) is actually dropping across many categories, meaning price pressures aren't getting permanently baked into consumer expectations.

2. Why Lowering Rates Doesn't Have to Mean Resurging Inflation

​The Disconnect: Traditional economics says cutting rates fuels inflation. Bessent argues the opposite for today's specific bottleneck: high interest rates driven by a massive government deficit are actually adding to corporate costs.

​The Goal: By getting the Fed to lower benchmark rates, the administration wants to relieve the credit squeeze on businesses and consumers, allowing the real economy to breathe without restarting a wage-price spiral.

​3. Growing Out of the Deficit Instead of Austerity

​The Grand Strategy: Bessents' ultimate thesis is that you don't beat high debt and inflation by choking economic growth. Instead, you manage supply chains, encourage domestic production, and let productivity expansion and economic growth naturally lower the debt-to-GDP ratio—paving the way for sustainable, lower interest rates over the long haul.