- The U.S. House just passed a bill to increase public debt by an additional 4 trillion USD.

- Over a period of 10 years, the budget deficit could reach 3.8 trillion USD.

- The bill is still highly controversial.

🏛 U.S. public debt has reached 36.2 trillion USD, accounting for 124% of GDP.

- The cost of interest payments is currently consuming 1/8 of the budget.

- In 10 years, it could increase to 1/6 of the budget.

🏋 The bill also includes the following items:

- Cutting 330 billion USD in student support.

- 46.5 billion USD for border security (building walls, expanding CBP, hiring more staff)

- Tightening Medicaid, SNAP regulations: requiring beneficiaries to work at least 80 hours/month.

🏢 The Trump administration believes the bill will be good for the economy.

- GDP could increase by 0.5% in 10 years.

🚧 However, many risks remain unaddressed:

- Moody's downgraded the U.S. credit rating due to rapidly increasing debt.

- Welfare programs may be cut down.

- The market is worried: the dollar has depreciated by 10% since January, green energy stocks are plummeting.

🗳 Political response:

- Democrats and some Republicans argue that this bill serves the wealthy more than taxes do.

- House Speaker Massie bluntly stated: The budget line is heading straight into an iceberg.

In summary:

- If the budget is a high-speed train, this bill is the gas station.

- If everything is cut: from subsidies, electric cars to students, perhaps this bill should have a new name: Total Cuts.