I think financial repression is how the US government will try to manage its otherwise impossible debt situation by siphoning off the wealth stored in Treasuries.

The idea is to stealthily confiscate wealth from bondholders without causing too much alarm.

However, there is a good chance that bondholders will figure out this insidious scam and dump their bonds, pushing interest rates higher.

Since the Fed cannot allow rates to rise much further without sparking the bankruptcy of the US government, they’d be forced to print more dollars to try to counteract the rising rates.

However, that would cause inflation to increase and bondholders to seek an even higher interest rate to compensate for the inflation, creating a self-perpetuating doom loop.

That could invite a disastrous financial collapse or even hyperinflation.

I expect the US government understands this and will implement measures to block the exits (capital controls) and corral more people into Treasuries through various mandates and regulations as they impose financial repression.