The US tax situation has just migrated from "worried" to "unsustainable". As previously reported, the Supreme Court overthrew Trump's emergency tariffs, exposing the government to more than $175 billion in refunds.
By Igor Pereira
Financial Market Analyst
What new CATO data Institute reveal is even more serious: each month that the government postpones payment of these refunds (IEEPA), the debt grows in $700 million only in accrued interest.
We are facing a financial drain that does not stop growing, as illustrated in the graph of collection and interest.
Compound interest: The interest of 4.5% on the $175 billion illegal tariffs is being calculated daily.
Long-term projection: If the government drags this lawsuit by 2029, the interest bar (yellow color in the graph) can become a significant portion of the accumulated total debt, draining billions that do not exist in the budget.
Trump's Answer: Instead of paying, the President announced +10% global additional tariffs immediately, challenging the court and trying to generate new revenue to cover the breach.
Gold is not just rising through the war; it is precluding American insolvency.
The "Reclaim" of the Channel: On the 4-hour chart, Gold is making a Herculean force to resume the top of the channel. If you succeed, new historical maxims will be one step away.
ERM in 65: Our market ground index continues to signal a Compression PhaseBut with the interest on debt rising $700 million a month, the jump to the Systemic Risk Zone (Systemic Risk Zone) is imminent.
Silver confirmed the breakup of the trend line and now ignores previous resistances. With the rally sustained by Golden Cross in the daily chart, the target in the $92 turbulence zone is being tested with force.
As JPMorgan warned, what we're seeing is big money protecting itself from a currency that's being diluted by interest and war.
My Vision:
America's debt is an endless spiral. You can print dollars to pay that extra $700 million a month, but you can't print physical gold to calm the central banks.
Physical Gold: Keep accumulating. The $5,400 barrier of Max Pain which we have identified is being pressed by macro discretionary funds.
Attention to DXY: The dollar may have strength spikes because of manufacturing data (PMI 51.6), but the long-term fiscal basis is degradation.
Premium Access: Hedge Strategy against Treasure Collapse
With the U.S. government owes $700 million more a month, the risk of a downgrade On the U.S. credit note, it's back on the table. In the Member Area, we release the action plan to protect your investments if the treasury bonds (USTs) suffer a new wave of massive sales.
Don't be the victim of the debt watch. Operate with ExpertFX
Latest comments
Join the conversation
You can post now and register later.
If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.
The US tax situation has just migrated from "worried" to "unsustainable". As previously reported, the Supreme Court overthrew Trump's emergency tariffs, exposing the government to more than $175 billion in refunds.
By Igor Pereira
Financial Market Analyst
What new CATO data Institute reveal is even more serious: each month that the government postpones payment of these refunds (IEEPA), the debt grows in $700 million only in accrued interest.
We are facing a financial drain that does not stop growing, as illustrated in the graph of collection and interest.
Compound interest: The interest of 4.5% on the $175 billion illegal tariffs is being calculated daily.
Long-term projection: If the government drags this lawsuit by 2029, the interest bar (yellow color in the graph) can become a significant portion of the accumulated total debt, draining billions that do not exist in the budget.
Trump's Answer: Instead of paying, the President announced +10% global additional tariffs immediately, challenging the court and trying to generate new revenue to cover the breach.
Gold is not just rising through the war; it is precluding American insolvency.
The "Reclaim" of the Channel: On the 4-hour chart, Gold is making a Herculean force to resume the top of the channel. If you succeed, new historical maxims will be one step away.
ERM in 65: Our market ground index continues to signal a Compression PhaseBut with the interest on debt rising $700 million a month, the jump to the Systemic Risk Zone (Systemic Risk Zone) is imminent.
Silver confirmed the breakup of the trend line and now ignores previous resistances. With the rally sustained by Golden Cross in the daily chart, the target in the $92 turbulence zone is being tested with force.
As JPMorgan warned, what we're seeing is big money protecting itself from a currency that's being diluted by interest and war.
My Vision:
America's debt is an endless spiral. You can print dollars to pay that extra $700 million a month, but you can't print physical gold to calm the central banks.
Physical Gold: Keep accumulating. The $5,400 barrier of Max Pain which we have identified is being pressed by macro discretionary funds.
Attention to DXY: The dollar may have strength spikes because of manufacturing data (PMI 51.6), but the long-term fiscal basis is degradation.
Premium Access: Hedge Strategy against Treasure Collapse
With the U.S. government owes $700 million more a month, the risk of a downgrade On the U.S. credit note, it's back on the table. In the Member Area, we release the action plan to protect your investments if the treasury bonds (USTs) suffer a new wave of massive sales.
Don't be the victim of the debt watch. Operate with ExpertFX