Government Fiscal Policy - Indonesian President aims to narrow the budget deficit [1] - Government plans to ramp up populist welfare measures [1] - Government seeks to squeeze more revenue from the country's natural resources [1]

Economic Overview - Stalling economic growth sets a tense backdrop [1] - Slumping oil revenues contribute to the tense backdrop [1] - A widening budget deficit adds to the economic strain [1] Geopolitical Context - Putin's summit with Trump aims to discuss an end to the war in Ukraine [1]

⚡️TODAY: Jim Cramer says Bitcoin is a “great hedge against the budget deficit.” https://t.co/qk83yqQv1w ...

Government Spending & Budget - Canadian government departments may face job losses due to Prime Minister's search for spending cuts [1] - Spending cuts are aimed to keep the budget deficit contained [1]

Well, one of the investors profiled in the Big Short is not worried about the size of the budget deficit. Steve Eisman is host of the Real Eisman Playbook podcast. He's former senior portfolio manager at Newberger Burman.He joins us here on set. Um Steve, you said this before. It doesn't matter.People have been running against us for decades. 40 years. 40 years.When do you think will it. You know what I say about all this. Just stop.God's sake. You know, I'm gonna say this. Maybe it's a little too obnoxious ...

Debt & Fiscal Policy Concerns - The US is unlikely to alter its current debt trajectory, potentially leading to adverse consequences [1] - A balanced approach involving both tax increases and benefit cuts is necessary to address the debt problem [1] - Political absolutism hinders the implementation of necessary fiscal adjustments [1][2] Potential Solutions - Finding solutions that circumvent rigid pledges against tax increases or benefit reductions is crucial [2]

Fiscal Policy & Debt Management - A large debt/dollar crisis can be prevented by cutting the budget deficit to approximately 3% of GDP [1] - A mix of tax revenue increases and spending decreases is required to sustainably deal with the deficit/debt problem [1] - A balanced approach, such as a 4% increase in tax revenue and a 4% spending cut, would improve the supply/demand balance for US debt [1] - Lower interest rates, resulting from the improved debt supply/demand balance, would help reduce the budget deficit and benefit markets and the economy [1] Political Challenges - Political promises of "no tax increases" and "no benefit cuts" are inconsistent with the need to reduce the budget deficit [1] - Political absolutism prevents representatives from pursuing a balanced approach to deficit reduction [1]

Market Anomalies - Historically, the dollar index increases when the S&P 500 declines by more than 10%, but recently the dollar decreased while the S&P 500 fell almost 20% [1] - Typically, the 10-year Treasury yield decreases following the first Federal Reserve rate cut, but this time it increased, and the yield curve is steepening [2] US Treasury Market & Debt - The US faces an unsustainable interest expense due to a $21 trillion budget deficit and persistent interest rates [3] - The average coupon on Treasuries has risen from below 2% to nearly 4% [3][4] - Maturing bonds issued in 2008, 2009, and even 2019 with coupons as low as 025% are being replaced with bonds at 425%, a 400 basis points increase [4][5] - The long-term Treasury bond is losing its status as a reliable flight to quality asset, not responding as expected to lower interest rates or the current 25% inflation rate [5] Inflation Outlook - Near-term inflation is likely to rise, as the cumulative headline CPI rolling off from a year ago was 01%, while the most recent CPI was 018% [6] US National Debt Concerns - The US national debt is rapidly approaching $37 trillion, requiring innovative solutions [7]