February sixteenth, two thousand twenty-five (250210-250216)
I. Bessent proposes a “3-3” target to control debt costs:
1/ US economic growth each year 3% (3% Economic Growth)
2/ Keep the federal budget deficit at 3% (3% Budget Deficit)
3/ Increase US oil production by an additional 300 million barrels per day (3 Million More Barrels of Oil Per Day)
Breaking it down, the 3-3 plan has three core pillars:
3% real GDP growth (3% Real GDP Growth):Over the past year, US real GDP growth was 2.3%, which was a fairly strong year. The long-term potential GDP growth rate (Potential GDP Growth Rate) is about 1.7%. Therefore, Bessent’s plan means that the US economy would have to grow an additional 1.3% above its potential growth rate every year.
3% fiscal deficit (Fiscal Deficit):The US fiscal deficit is currently projected to account for 6% of GDP this year. Bloomberg’s baseline forecast shows that after 10 years, the deficit could reach 9% of GDP.Bessent’s goal is to reduce the deficit to 3% of GDP.
An additional 300 million barrels of oil production per day (3 Million Barrels of Additional Oil Production Per Day):He believes this will drive non-inflationary growth (Non-Inflationary Growth).
We’ll continue this topic tomorrow and discuss how much DOGE can actually cut.
II. Reviving Europe
European trading has been dormant for far too long. In this market cycle, we should be the first in the Chinese trading community to call attention to European trading..Everyone can review the details on the Planet; we’ve discussed them many times.
The last time EuroStoxx50 set an all-time high was on 3 2000 14… almost 25 years ago..This means that if you entered the industry after 2000, you still haven’t seen European stocks reach a new high.
But now you can witness history with us.
The weekend is over. Wishing everyone who made it this far a happy week ahead and all the best in the new week!
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