Big Beautiful Bill, “Effectively Dooms the U.S. to Debt Collapse”
June 30th, 2025Via: ZeroHedge:
The Senate version of President Trump’s Big, Beautiful Bill (BBB) will add nearly $3.3 trillion to US deficits over a decade, according to the latest estimate from the Congressional Budget Office, half a trillion more than the $2.8 trillion in deficit expansion under the House version of the same bill. That’s from a starting point with debt to GDP already in excess of 120% and the fiscal deficit sitting close to a peacetime record.
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The CBO score for the so-called One Big Beautiful Bill reflects a $4.5 trillion decrease in revenues (i.e. tax cuts relative to the pre-TCJA baseline) and a $1.2 trillion decrease in spending through 2034, relative to a current law baseline.
The Senate bill, by Republican request, was also scored as saving $508 billion over a decade relative to a current policy baseline. The party’s lawmakers have sought to use the accounting maneuver to permanently extend President Donald Trump’s 2017 income-tax cuts, and score them as costing nothing.
While this approach is expected to pass, it effectively dooms the US to debt collapse as every subsequent administration will use the same tactic from now on and pretend that trillions in incremental spending every 4 years are really just an extension of the baseline. Meanwhile, the US is set to hit $40 trillion in debt in less than 2 years.
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All accounting gimicks aside, at the end of the day just one number matters, and it’s pretty clear: the House version of the BBB seeks to add $4 trillion to the debt ceiling, pushing it to $40 trillion. The Senate version: $5 trillion.
Adding 10-15% to the debt in normal circumstances is obviously important, but over 10 years? The World is going to look very different in 3 years, let alone 10. One of the likely huge changes is the US dollar’s reserve status. Jack Mallers gives a rundown on the two crypto laws that are included in the bill, and what is going on with the interaction between the US dollar and crypto/stable coins–particularly tether/USDT (Trump says: Bitcoin takes pressure off the dollar) At minute 26:
http://www.youtube.com/watch?v=qQspssyxIo4
At minute 36, Mallers says “I think they (Trump admin) see Bitcoin as a stategic advantage to get out of this mess”
Then there’s the effect of AI on society, and the struggle for dominance in the field between countries (hope we survive it). It really is a new arms race, so the draconian language in the BBB bill regarding no State regulation for 10 years on AI companies is not surprising.
But it does seem like we have come into a time where the rules of our reality can be at least bent, if not broken–sort of like the concept of quantum tunneling, or the Kobayashi Maru scenario.
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