The Big Beautiful Bill will add $3.3 trillion to the deficit and increase the debt ceiling by $5 trillion. This will push the US debt to $42 trillion. 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 as global liquidity rises. #Bitcoin and L1 blockchain network tokens thats carry Stable Coins as well as quality stocks will expand to new all time highs as the liquidity is printed into existance. How will this roll out? 1. The US Treasury can borrow up to that amount by issuing new Treasury securities through auctions, managed with the help of the Federal Reserve Bank of New York. These securities are purchased by investors (e.g., Stable Coin Issuers, banks, foreign governments, pension funds), effectively providing the Treasury with cash to fund government operations, stimulus, or other expenditures. 2. The Fed Open Market Operations: The Fed can purchase Treasury securities from the market, paying banks with newly created reserves (a form of "money printing" known as Quantitative Easing or QE). This increases the money supply by injecting liquidity into the banking system. For example, if the Fed buys $5 billion in Treasuries, it creates $5 billion in new reserves. No Direct QE Requirement: The Fed isn’t obligated to buy the new debt. Most Treasury securities are bought by private investors (and now Stable Coin Issuers). However, if market demand for Treasuries is weak or rates rise too high, the Fed might step in to stabilize markets, indirectly supporting the new debt issuance. Liquidity Enters the Economy When the Treasury spends the borrowed funds (e.g., on infrastructure, social programs, or debt servicing), the money enters the economy through payments to contractors, employees, or bondholders. This spending increases the M2 money supply, as banks receive deposits and create additional money through lending (via the fractional reserve system) potentially growing the money supply by 8.6% over a few years, depending on economic conditions. Potential Inflationary Effects Raising the debt ceiling by $5 trillion could lead to inflation if the Fed creates new reserves to buy Treasuries or if excessive spending floods the economy with liquidity. If the Fed buys Treasuries to keep interest rates low, it expands the money supply, which could weaken the dollar and raise prices. Risks: Market Absorption: The Treasury must find buyers for $5 trillion in new debt. If investor demand is insufficient, interest rates may rise, increasing borrowing costs. Alternative Mechanisms 1. The Treasury could bypass the Fed by issuing Stablecoins backed by Treasury bonds to create currency directly. However, this would require legislative changes like the "Genius Act" passing into law. (in process) 2. Currency debasement (intentional inflation to reduce debt value) is another theoretical path, but it’s not a direct policy and carries significant economic risks. Summary: Typically, the U.S. doesn’t "print" $5 trillion in cash but borrows it by issuing Treasury securities, which are sold to investors, Stable Coin Issuers, banks or, in some cases, the Fed. The Treasury spends the borrowed funds, injecting liquidity into the economy. The Fed may indirectly support this by creating reserves through QE, but most liquidity comes from market-based borrowing. This process could increase the money supply by up to 8.6% over time, potentially causing inflation if not managed carefully.