🚨 Ballooning U.S. Deficit Fuels Bullish Outlook for Gold & Bitcoin — Kobeissi
The U.S. is drowning in record-breaking debt — over $37 trillion — and the budget deficit is ballooning faster than ever. July alone saw tariff revenues soar 300% to a record $29.6 billion, pushing overall fiscal strain to alarming levels.
📊 Why It Matters:
A swelling deficit often means more money printing in the future.
This weakens the U.S. dollar, making hard assets like Gold and Bitcoin more attractive as “safe-haven” investments.
Inflation fears + currency debasement = investors looking for stores of value.
💡 Kobeissi’s Take:
> “We are in an unprecedented situation — Gold and Bitcoin are now among the most favorable assets to own.”
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🔍 Impact Analysis
1. Gold’s Shine Returns ✨
Central banks & investors could increase gold holdings to hedge against inflation.
Historically, gold rallies during deficit-driven dollar weakness.
2. Bitcoin as Digital Gold 💻🪙
Growing institutional interest in BTC as a borderless hedge.
Deficit fears can accelerate crypto adoption globally.
3. Market Psychology Shift 📈
Fear of fiscal instability may push more retail and institutional capital toward non-fiat assets.
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✅ Bottom Line:
A spiraling U.S. deficit isn’t just an economic headline — it’s a signal flare for investors. If the dollar’s purchasing power erodes, Gold and Bitcoin could see significant long-term upside.
