Welcome back to The Breakdown with me, NLW.

It's a daily podcast on macro, Bitcoin, and the big picture power shifts remaking our world.

What's going on, guys? It is Tuesday, May 30th, and today we are wrapping up the macro story that has dominated markets for the past couple of months.

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bit.ly slash breakdown pod. All right, friends, well today, as I said, we are hopefully

wrapping up or at least putting a big momentary pause on the macro story that has dominated markets

for the past few months. Yes, a deal has been reached in the debt ceiling standoff, with both President

Joe Biden and Republican House Speaker Kevin McCarthy, making major concessions in order to move

the matter forward. The deal on the table would suspend the debt ceiling entirely until

the 1st of January 2025. Presumably, this puts off the next dispute over federal borrowing

until the middle of that year

and uncapping the debt limit in the interim. The core of the argument is a two-year cap on federal

spending, although each side is presenting the story slightly differently. The White House claims the

spending cap would reduce spending by around $1 trillion over the next decade, while the GOP argued

that spending cuts are twice that level.

New York Times analysis puts the spending reduction at around $55 billion next year and another $81

billion the following year. So let's talk about what's actually in the deal. The set of tradeoffs in the

deal have caused outrage among numerous groups of ideologically aligned lawmakers and special

interest groups on both sides of the aisle,

to the point where there are a few truly happy with the compromise. Now, that of course might mean

in America's polarized politics that it's actually a good compromise deal. IRS funding has been

...