Group 1 - The core viewpoint is that the U.S. government may need a significant market crisis, similar to the one experienced in the UK under former Prime Minister Liz Truss, to prompt necessary fiscal reforms and address the rising budget deficit [1][2]. - Stephen Jen expresses concern over the current trajectory of U.S. fiscal policy, indicating that despite hopes for cost-cutting measures, the government is not moving in the right direction [1][2]. - The U.S. fiscal deficit is at a dangerous level, with deficit rates exceeding 6% for the past two years, which is unusual outside of economic downturns or wartime [2]. Group 2 - The long-term U.S. Treasury yields are rising, with the 10-year Treasury yield approaching 5%, driven by concerns over the debt situation exacerbated by proposed tax cuts [2]. - The House of Representatives' proposed legislation could increase the U.S. debt burden by at least $3.3 trillion by 2034, pushing the annual deficit rate above 7% [2]. - A report co-authored by Jen outlines the potential for meaningful cost reductions of up to $500 billion through the DOGE initiative, alongside an additional $300 billion from increased tariffs, yet this would still leave a $1.2 trillion deficit gap that only spending cuts could address [5].