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Nov 13, 2025The US Treasury bought back $142M in debt amid warnings from Ray Dalio about fiscal crisis, while Trump and crypto advocates position digital assets as potential solutions to America's mounting obligations.
The US Treasury conducted a debt buyback operation targeting Treasury Inflation-Protected Securities worth up to $500 million, settling on November 13, 2025, as part of ongoing efforts to manage the nation’s ballooning debt crisis.
Dalio Warns of ‘Economic Heart Attack’ Within Three Years
Ray Dalio escalated his debt crisis warnings, stating the US faces “an economic heart attack” unless the federal deficit drops from roughly 6% to 3% of GDP within three years.
The Bridgewater founder outlined a self-reinforcing cycle in which excessive debt during downturns leads countries to print money, devalue their currency, raise inflation, and ultimately spawn political extremism as living standards collapse.
Consumer Debt Reaches Breaking Point
American households face unprecedented financial stress as student loan delinquencies exploded to 14.3% in Q3 2025, the highest level ever recorded, while auto loan delinquencies hit 3% and credit card delinquencies reached 7.1%.
The Kobeissi Letter reported consumers are “drowning in debt” despite relatively low unemployment rates.
What Does America’s Debt Crisis Mean for Crypto?
Trump positioned crypto as fiscal relief, stating that it “takes a lot of pressure off the dollar,” while Senator Cynthia Lummis is advancing Strategic Bitcoin Reserve legislation, seeing it as the “only solution” to offset the National Debt.
The administration views crypto as a viable hedge against mounting national debt.
However, market observers remain divided, with some speculating that increased stablecoin focus could divert attention from Bitcoin accumulation strategies despite overall positive regulatory sentiment toward digital assets as debt alternatives.
Sources >> US Treasury Buys Back $142M in Debt — Here’s What It Means for Crypto