According to The Kobeissi Letter, the persistent inflation and US deficit spending have led to the US interest expense on national debt reaching a record $1.2 trillion over the last 12 months. This situation necessitates mass issuances of US Treasuries, which in turn causes bond prices to fall as the market becomes saturated with bonds. Traders should monitor bond market movements as they can impact broader financial markets.

According to The Kobeissi Letter, the US government has the potential to create a more efficient and transparent spending system, which could eliminate $5 billion of deficit spending per day. This reduction in deficit spending is crucial for traders as it might influence interest rates and economic stability, directly affecting market volatility and investment strategies.