
NingNing|Jul 05, 2025 10:24
What is the impact of the Great Beauty Act on the US dollar financial system? 👀
When faced with uncertainty, prompt first.
Firstly, let's use the prompt 'You are now a top Wall Street analyst, model and analyze the short-term and long-term impact of the just passed Great Beauty Act on the US dollar financial system.'. Ask questions about the AI big model Claude Sonnet4/Grok3.5/Deep Seek V2 respectively, in order to search for English information.
Then, let Claude Sonnet4 become a scoring expert and conduct multidimensional scoring on the above AI models (see the figure below).
From the rating explanation in the above figure, we can see that Grok excels in real-time data collection and authenticity, while Deepseek and Claude have stronger reasoning and structured thinking abilities.
It should be noted that due to the limitations of DeepSeek's Chinese language environment and ideological alignment, its views need to be treated with special caution.
Finally, summarizing the analysis of these three major models, we can draw the following concise conclusions about the impact of the Great Beauty Act on the US dollar financial system:
one ⃣ What is the Great Beauty Act doing?
Both the Great Beauty Act and the reciprocal tariff action are the rebalancing strategy of the U.S. financial system serving the Trump 2.0 government, and are the greatest common denominator between the MAGA group, which is the leader of the U.S. government, and the Silicon Valley technology elite.
On the one hand, the Great Beauty Act reduces the welfare of the elderly and lazy people in the United States, as well as the "green gold" gray income of the white left elite. On the other hand, it reduces taxes for hardworking American entrepreneurs, families, and service industry workers, and injects blood into military complexes and energy interest groups.
The reciprocal tariff action put an end to Europe, China, and Japan using the process of globalization to collude with multinational manufacturing companies in the United States through unfair tariff policies to feed on ordinary Americans for a long time.
two ⃣ How does the Great Beauty Act affect?
Mastering the Global Left Parasite of Media 🪱 We are spreading the harmful effects of the Great Beauty Act on the financial health of the United States and promoting it as a 'robbing the poor to help the rich'. Unfortunately, both of the above are slogans rather than facts.
First of all, we need to understand the basic concept that the debt/GDP ratio or the debt interest/fiscal revenue ratio, a national financial health indicator, is related to two core variables: GDP growth rate and 10-year treasury bond interest rate.
And the Great Beauty Act is precisely through these two factors that it affects the fiscal health of the United States and the US dollar financial system (US bonds/US dollars/US stocks/cryptocurrency markets)
According to Grok3.5 calculations, the Great Beauty Act will stimulate economic growth (GDP+0.4%) and US dollar appreciation in the short term, but in the long term, it will lead to deficit expansion (6.5% -7.4%), increased US bond yields (4.8% -5.3%), inflationary pressures (3.8% -4.2%), and a debt/GDP ratio of 130%.
However, this estimate is only for reference. The Great Beauty Act has a very complex impact on GDP growth rate and 10-year treasury bond interest rate, and Grok 3.5 does not include the positive impact of AI on GDP brought by the improvement of American productivity in the next 10 years.
According to Claude's reasoning, in a medium risk scenario, the market gradually adapts to higher debt levels and interest rate environments, and the budget impact of the Great Beauty Act ranges from a moderate increase of $300 billion in debt (assuming a 2.2% growth rate) to a surplus of up to $2 trillion (assuming a 2.7% growth rate).
That is, the Great Beauty Act may write a new chapter in the story of Reagan Thatcher's neoliberal economics of "tax cuts creating fiscal surpluses" in the last century.
three ⃣ How does the Great Beauty Act affect the cryptocurrency market?
To some extent, the passage of the Great Beauty Act, coupled with the Federal Reserve's negative attitude towards interest rate cuts, formed the US version of fiscal policy easing in a tight monetary policy environment.
Generally speaking, this macroeconomic situation will impose restrictions on growth risk assets (the overall attributes of cryptocurrency market assets).
In fact, before and after the passage of the Great Beauty Act, the yield of 10-year US Treasury bonds has broken through the downward channel and rebounded continuously for three days. The cryptocurrency market, which is highly sensitive to changes in global financial market risk appetite, also ended its early month rally and sharply retreated.
However, due to the extremely complex impact of the Great Beauty Act on the US dollar financial system and insufficient long-term value recognition of stablecoins/coin stock integration, the rationality and effectiveness of current pricing in the cryptocurrency market are questionable.
Perhaps after the US stock market reopens next Monday, market sentiment will flip.
above.
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