The Big Beautiful Bill is currently in the Senate where it is being debated. If it passes there, it will go back to the House of Representatives before finally making its way to President Trump’s desk to be signed into law.

What’s in this bill?

No one knows. It’s over 1,000 pages. And I can guarantee no one voting on it has bothered to read it.

The one thing we do know about the bill, it is current form, is that it will add $3.3 trillion to the deficit and increase the debt ceiling by $5 trillion. These are NOT small numbers. The U.S. just hit $37 trillion in debt last month. And it is already running the kind of deficit usually associated with major recessions at a time when the economy is still growing!

Let’s be clear here… if the BBB passes in its current form, there is no returning from that point. The U.S. will officially have crossed the “Debt Rubicon.” No matter what the President or his cabinet claim, the U.S. CANNOT grow its way out of this mess.

Remember, there are three means of dealing with a debt issue:

1. Pay it off.
2. Default/ restructure.
3. Inflate it away.

If the BBB passes, then we are heading for #3: inflate it away.

This will involve the U.S. dollar losing purchasing power and inflation hedges soaring. In fact, that process has already begun. Gold recently hit new all-time highs priced against every major currency. The precious metal is now correcting after a blistering run higher. But if the BBB passes in its current form, you can expect gold to break out to new highs.

This is also why stocks continue to climb a wall of worry. Stocks are an inflation hedge… and they will rise in nominal terms as the $USD falls. In fact, you can think of what’s unfolding as the great global melt-up, fueled by money printing to deal with excessive debt (the world just cleared $300 trillion in debt outstanding last month).

There is a LOT of money to be made here with the right investments. Some investments will be erupting higher in the coming months. Others will lose a tremendous amount of value.

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