According to @KobeissiLetter, China is actively selling US Treasuries and increasing its gold purchases due to current economic conditions, including interest rate instability, inflation, and a $1.8 trillion US deficit. This strategic move highlights gold's status as a global safe haven asset.

According to The Kobeissi Letter, China is reducing its holdings in US Treasuries and increasing its gold reserves due to the current economic environment characterized by interest rate instability, inflation, and a rising $1.8 trillion annual US deficit. This shift towards gold highlights its status as a global safe haven asset.

According to The Kobeissi Letter, while the refund is not contributing to deficit spending, it does not assist in reducing the US deficit either. The $400 billion, equivalent to approximately 22% of the FY2024 US deficit, could have been allocated for debt reduction, which is crucial for improving the country's fiscal health and indirectly impacting inflation control through stronger fiscal discipline.

According to The Kobeissi Letter, DOGE's objective of significantly reducing the $1.8 trillion US deficit is expected to affect multiple markets. The recent developments have seen the 10-year note yield decline by approximately 40 basis points from its peak, and gold prices are approaching $3000, despite a resurgence in inflation. Traders are advised to monitor these shifts closely as they present potential opportunities and risks.

According to The Kobeissi Letter, the US government's deficit to GDP ratio last year was 6.4%, with interest payments contributing 3.1 percentage points. This suggests a significant impact of interest rates on the deficit, highlighting the need for lower rates to manage fiscal balance. Traders should monitor US interest rate policies, as changes could affect market stability and currency valuations.

According to The Kobeissi Letter, the hypothetical scenario of DOGE eliminating the US deficit highlights significant economic implications. The US deficit spending in 2024 was approximately $1.8 trillion, equivalent to about 6.1% of the US GDP, which was around $29.7 trillion. The analysis suggests using a moderate 1.5x Government Spending Multiplier to evaluate the potential impact on economic activity, although this remains a theoretical exercise rather than a practical trading strategy.

According to The Kobeissi Letter, the implications of DOGE potentially eliminating the US deficit are profound. In 2024, the US deficit was approximately $1.8 trillion, which is about 6.1% of the US GDP valued at $29.7 trillion. The analysis suggests that using a moderate 1.5x Government Spending Multiplier could have significant effects on the economy. This information is crucial for traders considering the broader economic impact on cryptocurrency markets.

According to @KobeissiLetter, there is notable concern over DOGE's restricted access to US spending data following the announcement of a $1 billion per day spending cut aimed at addressing the $1.8 trillion US deficit. This restriction could impact DOGE's ability to analyze fiscal policy changes, potentially affecting its market trading strategies.

According to The Kobeissi Letter, the US deficit reached $1.8 trillion in 2024, accounting for 6.4% of GDP. This has led to over $1 trillion per year on interest expenses alone. The need to finance this debt is primarily addressed through the sale of US government bonds, making it crucial for traders to monitor bond market dynamics as interest rates and bond demand will influence trading strategies.

According to The Kobeissi Letter, the US deficit has reached $1.8 trillion in 2024, equating to 6.4% of GDP. This substantial deficit results in over $1 trillion per year in interest expenses, creating a significant demand for US government bonds. Traders should note the implications for bond yields and market liquidity as this debt requires continued purchasing.