BlockBeats News: On July 1st, trading news platform Kobeissi Letter pointed out that the irony of the situation between Elon Musk and Trump is that eliminating the US fiscal deficit can actually achieve all of President Trump's economic goals at once.
First, eliminating deficit spending will reduce the issuance of treasury bond, thereby reducing the yield of treasury bond. This will also lower the inflation rate, allowing the Federal Reserve to cut interest rates and calm the volatility in the bond market. In fact, the bond market was the reason for the turning point of the trade war in April, when the yield of 10-year treasury bond bonds soared to more than 4.60%. To some extent, reducing deficit spending will enable Trump to exert more tariff pressure to narrow the trade deficit. Although the trade war is seen as' short-term pain for long-term gains', the true applicable scenario of this sentence is to reduce deficit spending.
As Musk's public statement on the debt crisis continues to sound, more and more Americans begin to pay attention to this issue. Since the stimulus measures during the 2020 pandemic began, bankruptcy is an inevitable destination on the current fiscal path in the United States.
