Stanley Druckenmiller's critique of the U.S. Treasury's bond buyback program misses a fundamental point: the Treasury is itself a market participant. His argument that such interventions distort price signals ignores that every issuer's decisions, including the Treasury's, are legitimate market actions. The Treasury's choices on issuance and retirement are made under enlightened self-interest, just like any other borrower.

These actions don't distort the market; they are integral to it. In fact, the resulting price formation is the very signal Druckenmiller values. The op-ed fails to recognize that market signals are created by all participants' actions, including the government's.