According to @KobeissiLetter, the U.S. Treasury posted a 345 billion budget deficit in August 2025, the largest monthly deficit of 2025 and the second-worst August on record, rising from July’s 291 billion (source: The Kobeissi Letter on X, Sep 12, 2025). Government spending surged to 689 billion for the month, pushing the fiscal year 2025 deficit to 1.97 trillion through eleven months, on track to be the third-largest annual shortfall after 2020 and 2021 (source: The Kobeissi Letter on X, Sep 12, 2025). The author characterizes this as an accelerating deficit spending spiral, a macro backdrop traders monitor when assessing Treasury supply, bond yields, U.S. dollar direction, and crypto risk sentiment in assets such as BTC and ETH (source: The Kobeissi Letter on X, Sep 12, 2025).