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Bitcoin continues its strong move higher this morning, breaching $67k for the first time since it briefly visited the area in late July.

Its correlation to Trump victory odds has returned, as polymarket betting has moved Trump to a 57% favorite, up from 50% on October 6th.

As Kamala has fallen in the polls, she’s gotten more aggressive on the podcast circuit, answering more questions from predominantly friendly journalists and creators.

Voters are realizing that she’s not very good at unscripted conversations.

In a last-ditch effort to spark enthusiasm from within her base, she’s resorted to racial pandering at a level rarely seen at the national level. Her tweet below is getting lambasted, and today’s lead story.

Kamala Makes Crypto Racial In Pandering Gone Wrong

Synopsis:

Kamala Harris has sparked controversy with her recent cryptocurrency policy, which focuses on protecting Black men who invest in digital assets. Critics, especially from the Bitcoin community, see this as a divisive and misguided approach.

Harris's emphasis on race-specific policy stands in contrast to Donald Trump’s broader pro-Bitcoin stance, which is aimed at fostering innovation for all Americans. This move has alienated many in the crypto community, who view Bitcoin as a race-neutral financial network accessible to everyone.

The Details:

• Harris announced a new policy supporting a regulatory framework for cryptocurrency specifically aimed at protecting Black men who invest in digital assets.

• Critics argue that Bitcoin is inherently open to everyone, regardless of race, and that Harris’s race-based policy is unnecessary and divisive.

• Donald Trump has positioned himself as a pro-Bitcoin candidate, emphasizing policies that benefit all Americans, which has resonated more with the broader crypto community.

• Harris’s broader campaign platform includes other issues, such as federal cannabis legalization and support for Black-owned businesses, as part of her “Opportunity Economy” pitch.

• Despite some backing from figures like Ripple co-founder Chris Larsen, many in the crypto community remain unconvinced by her “crypto pivot.”

Why It Matters: Harris’s race-targeted approach to crypto regulation has created backlash within the Bitcoin and wider cryptocurrency community. Bitcoin advocates see her policy as unnecessary and pandering, as the Bitcoin network already provides equal access to all individuals.

The move could further alienate voters who believe the government should not involve itself in racial favoritism when it comes to financial systems. For traders and investors, this policy highlights a potential disconnect between the Harris campaign’s understanding of cryptocurrency and the principles of decentralization and equal access that underpin it.

Key Points:

• Harris's crypto policy: Focuses on protecting Black men in crypto, sparking criticism from the Bitcoin community.

• Bitcoin’s ethos: A decentralized network accessible to all, with no need for race-based protection.

• Trump’s crypto stance: Seen as pro-innovation for all Americans, fostering broader appeal among Bitcoiners.

• Backlash: Harris’s policy is viewed as pandering, with many criticizing her focus on one demographic at the expense of others.

Bitcoin Magazine

China: Mixed Signals From Debt, Taxes, & Trade Data

China's Economy: Mixed Signals from Debt, Taxes, and Trade Data

China is grappling with several significant economic developments, including a potential $853 billion debt swap, new taxes targeting the ultra-rich, and persistent deflationary pressures. These factors highlight the challenges the country faces as it attempts to stabilize its economy while addressing long-standing financial risks.

1. $853 Billion Debt Swap to Rescue Local Governments

China is considering a large-scale debt swap worth 6 trillion yuan ($853 billion) to help local governments refinance hidden off-balance-sheet debt. This move comes as local government financing vehicles (LGFVs) have accumulated over 60 trillion yuan in debt, creating significant financial strain.

The plan would allow provincial-level governments to issue new bonds with lower interest rates, easing the financial burden on local authorities and freeing up cash for public spending​.

Why it Matters: The debt swap is part of China’s broader strategy to meet its 5% growth target. While the plan will provide temporary relief for local governments, it doesn't address market calls for more consumer-driven stimulus or direct central government borrowing. The success of this strategy depends on how well it alleviates pressure on local budgets and revitalizes local infrastructure spending.

2. Taxing the Ultra-Rich on Overseas Investments

China has started enforcing taxes on the overseas investment gains of the ultra-rich, a policy that had been largely unenforced until now. Wealthy individuals have been summoned by tax authorities for self-assessments and may face levies of up to 20% on overseas profits.

This tax push is part of President Xi Jinping’s “common prosperity” agenda, which aims to address income inequality and shore up fiscal revenue as land sales and other traditional sources of income decline​.

Why it Matters: The increased tax enforcement reflects China's growing urgency to boost government revenue amid slowing economic growth. The focus on the ultra-rich also aligns with Xi’s wealth redistribution campaign, but it risks accelerating capital flight and emigration, which have already seen over 1.2 million wealthy citizens leave the country since 2021. If this trend continues, it could further weaken China's tax base and investor confidence.

3. Deflationary Pressures and Weaker Trade Growth

China's latest trade and inflation data paint a worrying picture of continued economic slowdown. Export growth for September was a modest 2.4%, far below the 6.18% expected, while imports rose by only 0.3%, reflecting weak domestic demand.

The country’s trade surplus shrank, and its consumer price index (CPI) grew by just 0.4%, indicating persistent deflation risks​.

The producer price index (PPI) has now fallen for 24 consecutive months, signaling overcapacity and weak demand across industries like automotive and electronics. Core inflation, which excludes volatile food and energy prices, fell 0.1%, hitting its lowest point since 2021​​.

Why it Matters: Deflation could significantly undermine China’s economic recovery, especially as domestic consumption remains weak. With global demand for Chinese exports softening and internal market weakness evident, the country may struggle to reignite robust growth without more aggressive stimulus measures.

Takeaway: Cautious Optimism or Growing Risks?

China's attempts to stabilize its economy are met with a mix of cautious optimism and growing risks. The debt swap and new tax enforcement could ease immediate fiscal pressures, but the ongoing deflation and weak trade data suggest deeper structural problems.

Investors should watch for additional stimulus measures or policy shifts as China navigates this challenging economic landscape.

Bloomberg

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The BRRR is meant for informational purposes only. It is not investment advice. Please consult with your investment, tax, or legal advisor before making any investment decisions.ll