Scott Bessent, who helped George Soros break the Bank of England in 1992 (netting over $1B shorting the pound), is now defending rising U.S. borrowing costs by noting they're climbing globally—not just in America.
His argument: Investors aren't fleeing to Germany or Japan. Governments compete for the same capital. If lending appetite drops, rates rise everywhere.
But here's the implication some are drawing: America doesn't need to look healthy if Europe looks worse.
The theory: Weaken Europe → scare investors out of European debt → capital flows to U.S. Treasuries → businesses relocate to America → jobs and factories follow.
Europe loses capital and industry. America gains both.
Bessent hasn't said this explicitly. But the man who bet against Britain now sits in Treasury. The pattern is hard to ignore.
His argument: Investors aren't fleeing to Germany or Japan. Governments compete for the same capital. If lending appetite drops, rates rise everywhere.
But here's the implication some are drawing: America doesn't need to look healthy if Europe looks worse.
The theory: Weaken Europe → scare investors out of European debt → capital flows to U.S. Treasuries → businesses relocate to America → jobs and factories follow.
Europe loses capital and industry. America gains both.
Bessent hasn't said this explicitly. But the man who bet against Britain now sits in Treasury. The pattern is hard to ignore.