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📅 July 3, 7:00 – July 9,
Hey everyone! Today let's talk about the profound impact of the recently passed "Big Beautiful Act" on the market. Once the budget is passed, the fiscal landscape for the next decade becomes clear: annual spending skyrockets to $7 trillion, while revenue is only $5 trillion, resulting in a steady deficit of $2 trillion, which accounts for 6-7% of GDP. In simple terms, the government earns $5 but spends $7, and the debt could rise from $35 trillion (100% of GDP) to $50 trillion (130%) in ten years, leaving each household with a debt burden of $425,000!
This is not over yet; interest expenses have exceeded 1 trillion (accounting for 20% of income), and may exceed 2 trillion within ten years. The cost of debt service has jumped from 10 trillion to 18 trillion, squeezing the fiscal space to the point of suffocation. The government has three options: cut spending, raise taxes, or lower interest rates. Trump is eager to have the Federal Reserve cut interest rates to relieve the pressure, but the risks are not small—if U.S. debt credit collapses, global capital markets will tremble. Musk has long been unable to bear it.
If there is a real crash, gold will benefit the most, and Bitcoin may become a safe haven, depending on its decentralized attributes. The data speaks for itself, and historical trends back it up; this matter is worth paying attention to!