🙄 : Republicans Pretend To Care About Spending

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GM and BRRR.

Despite the initial excitement over the announced debt ceiling deal, politicians on both sides expressing concerns over the finer details.

• Republican hawks argue the deal doesn’t go nearly far enough to cut spending.

• Democrat doves argue the deal’s restrictions makes it unfairly difficult for people to qualify for entitlements.

Typically when both sides of a negotiation are unhappy you know you’re circling the target, and that they’re in the compromise zone.

Make no mistake the deal simply kicks the can down the road for two years without making any significant changes to the US’ overall debt or spending trajectory. This appears good for risk assets, hence the newsletter’s portfolio continuing its surge today.

The gravy train will continue until it blows up in the almighty dollar’s face.

Here’s what we BRRR’d today:

• Congress Reviewing Debt Ceiling Deal

• NVDA Tops $1T, Announces New Products

Congress Reviewing Debt Ceiling Deal

• Bipartisan Debt Ceiling Agreement Undergoing Congressional Scrutiny: A bipartisan deal has been formed to raise the U.S. debt ceiling, currently at $31.4 trillion, and it is set to face its first test in Congress. The House of Representatives Rules Committee is slated to review the 99-page bill, which will then go through a series of votes in the House and Senate. This process is occurring in anticipation of the U.S. Treasury running out of money to pay its bills by next Monday.

• Key Political Figures Anticipate Successful Voting: Both President Joe Biden and House Speaker Kevin McCarthy express confidence in gaining enough votes to turn the bill into law before the looming financial deadline.

• Internal Opposition and Possible Delays: Despite the overall optimism, some Republican representatives, such as Nancy Mace, have voiced their opposition to the bill. The Rules Committee, typically a rubber stamp for House leadership, now has three hardline conservatives appointed by McCarthy, two of whom have expressed intent to vote against the bill.

• Key Aspects and Implications of the Debt Ceiling Deal: The proposed bill suspends the U.S. debt limit until 2025, thus deferring this politically sensitive issue until after the 2024 presidential election. It introduces a variety of measures, including capping government spending, speeding up the permitting process for energy projects, reclaiming unused COVID-19 funds, and introducing work requirements for certain food aid programs. The bill also leaves Biden's infrastructure and green-energy laws mostly untouched, despite introducing some spending cuts and work requirements, which fall short of the more severe measures that Republicans had advocated for.

• Governor DeSantis Criticizes the Debt Deal: Florida Governor Ron DeSantis, also a 2024 Presidential candidate, has criticized the debt deal as "totally inadequate". He argues that the proposed massive amount of spending will continue to drive the country towards bankruptcy, mentioning the changes to the budget since the onset of COVID-19 spending.

  Reuters

Nvidia Tops $1 Trillion, Announces New Products

• Market Milestone: Nvidia has become the ninth company in history to reach a market capitalization of $1 trillion, overtaking companies such as Tesla and Meta. As the demand for chips has surged in the aftermath of COVID-19 supply chain disruptions, Nvidia's value has seen a considerable boost.

• AI Products Unveiling: CEO Jensen Huang revealed the DGX GH200, an AI supercomputer platform designed to aid tech companies in developing advanced AI chatbots at the Computex conference in Taiwan. It boats 500x more memory than the version last released in 2020. Major tech companies like Microsoft, Meta, and Google’s Alphabet are expected to be among the early adopters of this supercomputer platform.

• New Services and Partnerships: Nvidia introduced a new service, Nvidia ACE for Games, aimed at the video game industry to enhance the character depth of non-playable characters using AI. The company also announced a partnership with WPP, a marketing and communications giant, with plans to merge AI and metaverse technologies to reduce advertising costs. Additionally, Nvidia is developing a novel networking scheme aimed at increasing data transfer speeds within data centers.

• Regulatory Challenges: As AI development becomes more widespread, regulatory concerns arise. Tech executives, including those from Nvidia, have engaged in discussions with global lawmakers, including a recent meeting with U.S. Vice President Kamala Harris, to ensure regulation fosters innovation.

  TechCrunch

AI ART OF THE DAY

The BRRR’s Portfolio

COIN showing life as Cathy Wood is probably rage-buying more to revenge trade her bad exit of NVDA

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