We know what’s coming and we are prepared.
💸 Luke Gromen on X:
"Why DOGE doing what Milei did in Argentina in the US will NOT lead to a decline in US deficit/GDP, but a catastrophic BLOWOUT in US deficit/GDP unless US debt/GDP (USD) is significantly devalued 1st (b/c US receipts follow stocks, & deficits rise fast w/rates at 125% of GDP):
If we want to cut Entitlements + Defense to reduce the deficit/GDP, only to end up with higher deficit/GDP by the end of 2025 as stocks fall hard & rates spike on strong USD (see Wed's post-Fed market action), then we should do what Milei did in Argentina before devaluing USD
US receipts fall when rates rise. US outlays rise nonlinearly when rates rise with $36T in in debt. And US receipts fall when stocks fall
The US govt allowed this system to evolve, now they are getting the system they wanted, good and hard.
If I wanted to ensure that the US deficit/GDP was a multiple of where it is today in 12 months' time, I'd slash govt spending before devaluing US debt/GDP (the USD.)
If I wanted to position the US fiscal position for growth, I'd devalue debt/GDP 1st (USD), then "DOGE"."
📎 Luke Gromen
British man attacked for entering a ‘no-go zone’ in London.
A horde of Islamists surrounded him and questioned why he was in ‘their’ neighborhood.
They threatened him and began chanting ‘Allahu Akbar’ as they kicked him out.
Minister of State for Courts and MP for Finchley and Golders Green, Sarah Sackman, says religious courts like 'Shariah' are a fundamental part of 'British Values'.
A 65-year-old couple retiring in 2025 with average earnings will receive an estimated $1.34 million in lifetime benefits, while contributing only $720,000 in today’s dollars.
That shortfall—more than $600,000 per couple—is being made up by younger workers.
“Most of the growth in spending has gone to retirement and healthcare, while programs that promote upward mobility... have been left behind”
https://www.newsweek.com/social-security-medicare-young-workers-cost-10477619
