The US Debt Ceiling Matters for Dollar Liquidity

The US Treasury breached its debt ceiling of 31.4 trillion this week. This means that it will have to take extraordinary measures to keep the administration afloat. So, overall, we can actually have disinflation in the West alongside this Chinese reopening. We will have clear disin inflation in the U.S., and the Chinese reopening is still a decent bet on a three to four month horizon.