💰 The “Big Beautiful Bill” – Could This Push the U.S. Into a New Era of Debt and Inflation?
The U.S. Congress is currently reviewing a massive spending proposal dubbed the "Big Beautiful Bill", which could send shockwaves through global financial markets.
📉 Projected Impact of the Bill:
🔻 Budget deficit expected to rise by $3.3 trillion
🔻 Debt ceiling to be raised by $5 trillion, pushing the total U.S. national debt to $42 trillion
🏦 Where Will the Money Come From? Who Will Buy U.S. Debt?
The U.S. Treasury is expected to issue a large volume of government bonds.
Key bond buyers may include:
Major banks and financial institutions
Stablecoin issuers
Foreign governments
Possibly the Federal Reserve, if bond supply surges while demand lags — which could push yields sharply higher
💵 Impact on Money Supply and the Economy:
As the government injects these funds into the economy, the total money supply could grow by up to 8.6% over the next few years.
This would represent a massive liquidity boost — potentially fueling another inflation wave if not carefully managed.
⚠️ Major Risks Ahead:
Renewed inflation, eroding consumer purchasing power
Devaluation of the U.S. dollar
Spillover effects across global financial markets
🛡️ Which Assets Stand to Benefit?
As the dollar risks losing value, investors may seek safe havens to preserve capital, including:
✨ Gold – the traditional inflation hedge
✨ Bitcoin – increasingly regarded as digital gold
✨ High-quality stocks – resilient businesses with strong cash flows
