{"id":30911,"date":"2025-06-09T11:18:52","date_gmt":"2025-06-09T11:18:52","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=30911"},"modified":"2025-06-09T11:18:52","modified_gmt":"2025-06-09T11:18:52","slug":"world-governments-are-issuing-more-debt-than-ever-will-bitcoin-benefit","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=30911","title":{"rendered":"World Governments Are Issuing More Debt Than Ever, Will Bitcoin Benefit?"},"content":{"rendered":"<div>\n<p>\u201cWorld governments are issuing more debt than ever,\u201d commented the Kobeissi Letter over the weekend.<\/p>\n<p>Global sovereign bond issuances hit a record $18 trillion last year, and $16 trillion of that debt was issued by developed countries.<\/p>\n<p>Additionally, global government bond issuance has nearly doubled since 2019 on an unsustainable debt trajectory, it noted.<\/p>\n<blockquote>\n<p>\u201cHistorically high public spending on social programs and defense, new tax and spending policies, as well as elevated interest rates, have been behind this massive surge.\u201d<\/p>\n<blockquote class=\"twitter-tweet\">\n<p dir=\"ltr\" lang=\"en\">World governments are issuing more debt than ever:<\/p>\n<p>Global sovereign bond issuances hit a record ~$18 TRILLION in 2024.<\/p>\n<p>~$16 trillion of debt was issued by developed countries, and ~$2 trillion by emerging market economies.<\/p>\n<p>World government bond issuance has nearly DOUBLED\u2026 <a href=\"https:\/\/t.co\/X0QxXwtdIo\" data-wpel-link=\"external\" target=\"_blank\">pic.twitter.com\/X0QxXwtdIo<\/a><\/p>\n<p>\u2014 The Kobeissi Letter (@KobeissiLetter) <a href=\"https:\/\/twitter.com\/KobeissiLetter\/status\/1931394723585179795?ref_src=twsrc%5Etfw\" data-wpel-link=\"external\" target=\"_blank\">June 7, 2025<\/a><\/p>\n<\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<\/blockquote>\n<h2>More Debt More Bonds<\/h2>\n<p><a href=\"https:\/\/cryptopotato.com\/thailand-finance-regulators-to-restrict-worlds-first-tokenized-govt-bonds\/\" data-wpel-link=\"internal\">Government bonds<\/a> are a way for nations to raise money by issuing interest-earning debt securities to finance public spending.<\/p>\n<p>As debt surges, more of it needs to be refinanced, which means more bond buyers are needed, which puts pressure on the bond markets.<\/p>\n<p>On June 6, the Financial Times <a href=\"https:\/\/www.ft.com\/content\/a07d5a72-2691-4da5-aee0-4af5136f737e\" target=\"_blank\" rel=\"noopener\" data-wpel-link=\"external\">reported<\/a> that investor demand for long-term government debt is weakening, as evidenced by recent auctions of 20-year bonds in Japan and the US, which were poorly received, triggering sharp price drops and rising yields.<\/p>\n<p>Prominent investors such as BlackRock\u2019s Larry Fink and billionaire hedge fund manager Ray Dalio warned of unsustainable deficits, especially in the US, which is considering a $2.4 trillion debt increase, prompting fears of a path to insolvency.<\/p>\n<p>Long-term bond yields serve as benchmarks for corporate debt, and higher yields will raise borrowing costs for businesses, risking growth. Additionally, a debt market dominated by hedge funds and short-term players <a href=\"https:\/\/x.com\/Schuldensuehner\/status\/1931485869535642018\" data-wpel-link=\"external\" target=\"_blank\">may become<\/a> more volatile.<\/p>\n<h2>Bitcoin The Beneficiary<\/h2>\n<p>Store-of-value assets like Bitcoin could benefit significantly from the unfolding global bond market strain and loss of faith in sovereign debt.<\/p>\n<p>If government debt becomes less attractive due to high yields, poor auction performance, and credit rating downgrades, investors may <a href=\"https:\/\/cryptopotato.com\/why-investors-are-starting-to-buy-bitcoin-over-bonds-2-trillion-allianz-economist\/\" data-wpel-link=\"internal\">seek alternatives<\/a> to store capital.<\/p>\n<p>Governments may also increasingly rely on inflation to erode the real value of debt, and BTC has often been considered an inflation hedge.<\/p>\n<p>Being non-sovereign and decentralized, Bitcoin also offers a parallel financial system that is immune to political manipulation or debt monetization.<\/p>\n<p>As countries and investors diversify away from US Treasuries and the dollar, Bitcoin could also be part of a new neutral reserve asset basket, especially in emerging markets.<\/p>\n<p>The asset was holding steady at around $105,500 at the time of writing, having recovered from its <a href=\"https:\/\/cryptopotato.com\/crypto-markets-see-red-as-trump-musk-bromance-ends-in-flames\/\" data-wpel-link=\"internal\">Friday dip<\/a> to $101,000.BTC has gained more than 50% over the past 12 months.<\/p>\n<p>The post <a href=\"https:\/\/cryptopotato.com\/world-governments-are-issuing-more-debt-than-ever-will-bitcoin-benefit\/\" rel=\"nofollow\">World Governments Are Issuing More Debt Than Ever, Will Bitcoin Benefit?<\/a> appeared first on <a href=\"https:\/\/cryptopotato.com\/\" rel=\"nofollow\">CryptoPotato<\/a>.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>\u201cWorld governments are issuing more debt than ever,\u201d commented the Kobeissi Letter over the weekend. Global sovereign bond issuances hit a record $18 trillion last year, and $16 trillion of that debt was issued by developed countries. Additionally, global government bond issuance has nearly doubled since 2019 on an unsustainable debt trajectory, it noted. \u201cHistorically [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-30911","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/30911","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=30911"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/30911\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=30911"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=30911"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=30911"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}