Ah, what we must ponder:
- Lo and behold, Bitcoin gallivanted toward the lofty heights of $110,000—as if it were the belle of the ball—just thirty minutes after dear Trump managed to utter the words “three hundred basis points too high” like a true connoisseur of financial drama.
- The Kobeissi Letter, in a chilly tone of calculation, proclaims that such a rate cut could send the S&P 500 soaring to the stratosphere of 7,000, whilst gold may just sprout wings to reach $5,000. They also draped themselves in warnings of inflation bubbling up over 5% and a potential leap in U.S. home prices by a staggering 25%. How delightful! 🎩
On the 9th of July, Bitcoin danced itself to $109,343, a charming 0.8% elevation over the previous 24 hours, as dictated by the mystical CoinDesk Research’s technical soothsaying.
In a whimsical post on Truth Social at the despicable hour of 10:00 a.m. ET, Trump proclaimed with all the gravitas of a theatrical performer that the U.S. federal funds rate was “at least 3 points too high.” The audacity! Such a call for a 300 basis point reduction suggests a fiscal burden upon refinancing costs totalling a staggering $360 billion annually. What a delightful calculation! Within half an hour of this proclamation, one might say Bitcoin decided to don its party hat as it steadily ascended, basking in the warm glow of traders enthusiastically foreseeing liquidity anew and a risk-on sentiment that could make even the most skeptical blush.

In an elaborate thread on the ever-charming X, the macro wizards at The Kobeissi Letter dissected Trump’s musings with the zeal of an inquisitive child in a candy store. They unveiled that total U.S. interest payments had already culminated in a staggering $1.2 trillion over the past twelve months—essentially $3.3 billion per day, or a small fortune for most mortals!
Their findings revealed that while Trump’s arithmetic assumes $360 billion in savings per percentage point across a mammoth $36 trillion in national debt, only approximately $29 trillion of that is held publicly enough to be rattled by such a ridiculous rate madcap. They entered into rather candid territory, suggesting that an exhaustive 300 bps reduction could merely trim interest expenses by about $174 billion in the first year—leading to a cumulative $2.5 trillion over five years, if one were to kindly refinance 20% of the debt annually. A splendid thought experiment, indeed!
Yet, dear reader, do not be lulled into complacency by dreams of savings, for the report forewarned that the economic repercussions of a 3% reduction would likely be catastrophic. Not a single Fed rate cut in modern history has exceeded 100 basis points—such a feat even in the throes of the 2008 calamity or the dire March 2020 emergency. To undertake a gallivanting 300 bps chop without the backdrop of recession, in a modestly growing economy, would indeed be an unfathomable venture.
The Kubissi Letter, ever the cautious narrators, suggested this move would likely fan the flames of inflation back above 5%, unleash a steep decline in the U.S. dollar—perhaps greater than 10%—and propel housing prices into the stratosphere due to plummeting mortgage rates. Asset markets might cheer in the short term, forecasting a jubilant gold reaching $5,000, oil frolicking above $80 per barrel, and the S&P 500 flinging itself beyond 7,000. They did, however, emphasize that the long-term consequences would be exceedingly destabilizing, especially in the absence of a significant decrease in U.S. government spending. A conundrum wrapped in humor, don’t you think? 😂
00 a.m. ET. A marvelous coincidence!
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2025-07-09 20:36