US Interest Costs Soar to $1.2 Trillion – Now Exceed Defense Spending
Over the last 12 months, US interest payments hit a record $1.2 trillion, surpassing defense spending ($900 billion) and now ranking as the second-largest government expense after Social Security. With trillions in debt maturing this year, the US government will have to refinance. If rates remain stable, total interest payments could skyrocket to $1.5 trillion by year-end. Even in a scenario where the Fed cuts rates by 100 bps (from 4.5% to 3.5%), interest costs are still projected to reach ~$1.3 trillion by the end of 2025. source : BofA
*TRUMP: WILL ANNOUNCE 25% TARIFFS ON STEEL, ALUMINUM MONDAY The largest exporter of steel & aluminum to the US? canada followed by mexico
What happened to the 30 day moratorium on tariffs from Canada & Mexico? Source: Vic_Turbendian
BREAKING: Beginning Monday, China will implement tariffs of up to 15% on $14 billion in U.S. exports, including LNG, coal, crude oil, farm equipment, and select vehicles.
Looks like China is fighting back against Trump's 10% tariffs on Chinese imports that he announced last week... Source: Financial Times
China's retaliatory tariff will hit the United States today.
Here is how the U.S Corporations and consumers will be impacted. Source: Unicus @UnicusResearch
Valuation of Public Companies with Market Caps Over $10B
The gap between European and U.S. equities continues to widen. While U.S. stocks trade at historically high valuations, their European counterparts lag significantly behind. source: A.Arouet
The US economy has been driven by a massive DEBT BUBBLE: In 2024, to generate 1 unit of GDP growth it took $3.8 of national debt...
In Q4 alone, it took $5.8 of debt to create $1 of economic growth. If not for the huge debt, the US economy would have been in a recession. Source: Global Markets Investor
Federal Reserve's Reverse Repo Facility is plummeting
QE & money printing might start aggressively when this drains to 0 Source: Quinten | 048.ethm@QuintenFrancois, Bloomberg
‼️US economy policy uncertainty is SPIKING:
This means economic environment will be challenging to predict and may impact investments and spending, as well as trigger more volatility in the markets. The index is only below the 2018 levels when the previous trade war took place. Source: Global Markets Investor
