The US Treasury executed a bond buyback operation. It acquired up to $500 million in Treasury Inflation-Protected Securities (TIPS). The operation settled on November 13, 2025, aiming to manage the growing US debt crisis amid serious warnings from experts.
This action comes as figures like Ray Dalio alert about the US fiscal trajectory. The government spends 40% more than it collects. Thus, cryptocurrency advocates position digital assets as potential solutions. They could alleviate the country’s mounting obligations. The buyback focused on TIPS maturing between February 2040 and February 2055. Primary dealers submitted their offers through the Federal Reserve Bank of New York’s FedTrade system.
Do cryptocurrencies represent a viable alternative in the face of global economic instability?
On the other hand, total US debt is approaching $40 trillion. This figure has sparked intense debate about fiscal sustainability. Alternative financial systems are also being discussed. Ray Dalio has intensified his warnings. He states the US faces an “economic heart attack” in three years. To avoid this, the federal deficit must drop from 6% to 3% of GDP. This cycle of excessive borrowing leads to printing money, devaluing currency, and inflating prices. Eventually, this generates political extremism as living standards collapse.
Dalio explained in an interview that the country is spending 40% more than it takes in. He describes it as a chronic problem. He compares the accumulation of debt service payments to “plaque in the arteries,” which “squeezes away buying power.” Furthermore, the government will have to sell $12 trillion in debt. This includes $9 trillion in maturing obligations, $1 trillion in interest payments, and $2 trillion in new borrowing.
In addition, American households face unprecedented financial stress. Student loan delinquencies soared to 14.3% in Q3 2025. This is the highest level ever recorded. Auto loan delinquencies reached 3%. Credit card delinquencies hit 7.1%. The crisis intensified after the end of student loan relief programs. Serious delinquencies jumped 13.5 percentage points year-over-year. Economists warn that the wealth gap has reached extremes. The top 10% of earners account for 49.2% of total US spending.
Financial analysts anticipate that the resumption of wage garnishment will divert billions from consumer spending. Nearly 2 million borrowers could see up to 15% of their paychecks seized. The US debt crisis and rising household debt pose significant challenges. They could impact the broader economy. The search for alternative solutions, such as digital assets, could become more relevant in the future financial landscape.
