Why Trump’s Treasury sec would have zero interest in using ‘forever bonds’ to refinance the nation’s staggering debt

The Trump economic team has floated the idea of issuing 'forever bonds'—50- or 100-year bonds—to refinance the US's massive $36 trillion debt amid ongoing trade negotiations, though Treasury Secretary Scott Bessent and others close to him have denied this is a current focus. Stephen Miran, a key figure in Trump's economic circle and a proponent of such bonds, suggests they could be part of a strategy to re-industrialize the US by restructuring trade and reducing the dollar's strength. However, Wall Street skepticism and concerns about destabilizing markets have kept the idea from gaining traction.
Simultaneously, new SEC Chair Paul Atkins faces mounting pressure to investigate nearly 300 Chinese companies listed on US stock markets, amid allegations of inadequate disclosures about ties to the Chinese Communist Party. Lawmakers, including Senator Rick Scott, have urged Atkins to act, citing national security and economic concerns. Such a probe could significantly impact the stock values of these companies, further straining US-China relations amid an ongoing trade war.
RATING
The article provides a timely and relevant exploration of significant economic and political issues, such as the potential issuance of 'forever bonds' and the SEC's scrutiny of Chinese companies. Its strengths lie in addressing topics of public interest and raising awareness of ongoing debates in economic policy and international relations. The story is generally clear and readable, with a logical structure that guides readers through complex topics.
However, the article's reliance on unnamed sources and lack of transparency in sourcing and methodology weaken its credibility and impact. The narrative could benefit from more balanced perspectives and authoritative voices to enhance its accuracy and engagement. While the article raises important issues, its speculative nature and limited evidence may constrain its influence on policy discussions or public opinion.
Overall, the story is a valuable contribution to discussions on economic policy and international relations, but there is room for improvement in sourcing, transparency, and engagement to maximize its potential impact and credibility.
RATING DETAILS
The story's accuracy is relatively strong, with several key claims aligning with known facts. The discussion of 'forever bonds' as a fringe idea within Trump's economic team is consistent with academic proposals for long-term debt instruments, though not widely adopted in policy. The article accurately portrays the skepticism from Wall Street regarding these bonds, reflecting the market's general aversion to the risks associated with very long-term debt.
However, the claim about Scott Bessent's disinterest in 'forever bonds' needs more substantiation, as the article relies on unnamed sources. The story accurately notes the historical consideration of such bonds during Trump's first term, but it lacks direct evidence or statements from involved officials like Stephen Miran. The narrative on potential market destabilization is plausible but speculative without explicit market data or expert analysis.
The report on SEC Chair Paul Atkins facing pressure to investigate China-based companies is credible, given the bipartisan concerns over foreign influence and transparency. Yet, the article could benefit from direct quotes or official statements confirming these pressures. Overall, the story presents a mix of verified facts and speculative elements, warranting a moderate accuracy score.
The article provides a somewhat balanced view by presenting different perspectives on the issuance of 'forever bonds' and the pressure on the SEC to investigate Chinese companies. It includes skepticism from Wall Street experts, which counters any potential bias toward the feasibility of long-term bonds.
However, the story leans towards a critical stance on the 'forever bonds' idea, labeling it as 'zany' and emphasizing the risks without fully exploring potential benefits or alternative viewpoints. The narrative could be more balanced by including insights from proponents of the bonds or more detailed economic analyses supporting the concept.
The coverage of the SEC investigation is similarly one-sided, focusing on the pressure from U.S. lawmakers without considering the perspectives of the Chinese companies involved or potential diplomatic implications. This lack of balance slightly undermines the article's overall fairness.
The article is generally clear in its language and structure, with a straightforward narrative that guides the reader through the key issues of 'forever bonds' and the SEC investigation. The writing is accessible, and the use of subheadings helps organize the information logically.
However, the story occasionally lacks clarity in explaining complex economic concepts, such as the mechanics and implications of issuing 'forever bonds.' The article assumes a certain level of financial literacy from its readers, which might not be present in a general audience.
The narrative could benefit from additional explanations or analogies to help readers better understand these complex topics. Overall, the clarity is adequate, but there is room for improvement in making the content more accessible to a broader audience.
The article relies heavily on unnamed sources, particularly in discussing Treasury Secretary Scott Bessent's stance and the SEC's potential actions. This reliance on anonymous information can weaken the perceived credibility, as it lacks direct attribution or confirmation from official channels.
While the story mentions people close to Bessent and unnamed Wall Street CEOs, it does not provide specific names or verifiable quotes, making it difficult to assess the reliability of these claims. The lack of direct statements from key figures like Stephen Miran or Paul Atkins further detracts from source quality.
The article could improve its credibility by incorporating more authoritative sources, such as official statements, documents, or interviews with named experts in the field. Currently, the lack of transparency in sourcing diminishes the overall reliability of the report.
The article lacks transparency in its sourcing and methodology, which affects the clarity and trustworthiness of its claims. The use of unnamed sources, particularly in discussing Treasury Secretary Bessent's views and the pressures on SEC Chair Atkins, leaves readers without a clear understanding of the basis for these assertions.
There is little disclosure about the methodology behind the claims regarding 'forever bonds' or the potential market impacts. The article does not provide detailed context or evidence to support its assertions about market reactions or the feasibility of long-term bonds, reducing transparency.
Furthermore, the story does not address any potential conflicts of interest or biases in its reporting, which could affect the impartiality of the narrative. Greater transparency in sourcing and methodology would enhance the article's credibility and reader trust.
Sources
- https://www.johnhcochrane.com/research-all/a-new-structure-for-us-federal-debtnbsp
- https://goldbroker.com/news/united-states-huge-debt-refinancing-remains-2025-biggest-challenge-3483
- https://tavexbullion.co.uk/the-us-must-refinance-28-trillion-in-debt-in-four-years/
- https://www.youtube.com/watch?v=Kq-rCY3i1I8
- https://anderson-review.ucla.edu/how-much-debt-can-the-government-roll-over-forever/
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