The new U.S. President Trump recently expressed strong opposition to a proposal to provide short-term funding to the government, causing the current Biden administration to shut down again due to lack of funds. Why would Trump do this? (Preliminary summary: Wall Street Journal: Trump is considering significantly reducing or abolishing banking regulatory agencies. Is encryption regulation expected to be fully relaxed?) (Background supplement: Fed’s mouthpiece: The era of Fed’s ultra-low interest rates is over, and Trump holds the key to cutting interest rates in 2025) Bye The government is currently facing another shutdown crisis due to insufficient funds. In response, congressional negotiators proposed a short-term appropriation plan on December 17, aiming to provide funds to the government until March next year to avoid a government shutdown. However, the new U.S. President Trump has objections to this proposal. Trump clearly opposed the proposal on December 18 and threatened to expel his Republican colleagues if they did not accept his request, intensifying the debate this evening. The possibility of a government shutdown at some point. At the same time, Trump and the new Vice President Vance also jointly issued a statement saying: This bill's concession to the Democrats is a betrayal of the country, and Republicans should stay smart and tough. Pass a streamlined bill instead of giving the Democrats everything they want... Bloomberg said that if the appropriation bill fails, the U.S. government may partially shut down as early as December 21 local time; but if it passes, the next appropriation battle will It will last until mid-March next year, when the newly elected Congress will pass more permanent funding. Why does Trump ignore the government shutdown? Trump’s move may make many people confused. People may ask, Trump is about to officially declare his inauguration on January 20 next year. As the new president of the United States, what is the current government shutdown for him? What are the benefits? In fact, Trump's real reason for opposing the bill may be that he wants to use it to solve the long-standing issue about the U.S. government's "debt ceiling." According to Trump, if Democrats hope to maintain the normal operation of the Biden administration, they must add a bill to abolish the U.S. government's "debt ceiling" to this bill. Trump said: If Democrats want to lift the debt ceiling, he will be at the forefront of supporting it. The consequences of breaching the debt ceiling are uncertain and could range from catastrophic to inconsequential... Trump may believe that the debt ceiling deadline is a trap set by the Democrats and wants to embarrass the Republican Party in the future after he takes office. Therefore, he may want to take this opportunity to directly abolish the debt ceiling, so that he does not have to worry about it after taking office. What is the U.S. government’s “debt ceiling”? The debt ceiling is the maximum amount the U.S. federal government can borrow to meet its incurred payment obligations, and is currently set at $31.4 trillion. In December 2022, the U.S. Treasury Department warned Congress that the U.S. debt at that time was approaching the debt ceiling. After more than half a year of fighting between the Republicans and the Democratic Party, on June 3, 2023, President Biden Signed the bill to extend the debt ceiling to take effect in early 2025, temporarily averting the U.S. government's debt default crisis. At present, the total debt of the U.S. government has reached 36.2 trillion U.S. dollars. If the two parties in Congress cannot vote again to extend the effective time of the debt ceiling, the U.S. government will really fall into a debt default by early next year. As for Trump, he is about to take office in January next year, and the U.S. government’s long-term fiscal deficit policy is close to getting out of control. Therefore, Trump may not be willing to put on the emergency brake during his term. The best way is to Solve this problem quickly and repeal the debt ceiling regulations to prevent the Democratic Party from using it as a bargaining chip in party disputes during his term and causing trouble for the Republican Party and Trump. Will a government shutdown bring down the economy? It is worth noting that next week the United States will usher in Christmas, the most important holiday of the year. If the government is really shut down during this period, all aspects of residents’ lives may be affected, and the direct economic losses caused by this may be It would be in the billions of dollars. But we may not need to worry too much. In fact, U.S. government shutdowns are nothing new. The U.S. government has shut down more than 20 times since 1976, but none of them caused a major financial crisis. At the same time, observing the four shutdown events after 2000, in addition to the stock market falling before the shutdown, they all rose against the trend after the shutdown was confirmed. Therefore, regardless of whether the U.S. government is shut down, the impact on the stock market may be limited. The U.S. dollar is stronger. According to TradingView data, the U.S. dollar has been performing strongly in recent days, which may be affected by the U.S. Federal Reserve's slowdown in expectations for interest rate cuts next year. The U.S. dollar index is currently trading at 108.272, up 1.63% in the past week. US dollar index. Source: TradingView Related reports The 10-year U.S. bond yield rose above 4.5%! New Bond King: Trump will not buy Bitcoin before taking office. The Trump family will add more positions in DeFi! Buying ONDO, AAVE, and ENA tokens, holdings exceed 80 million magnesium. Arthur Hayes: The crypto market is expected to plummet on 1/20, and Trump will use the depreciating dollar to boost the U.S. economy. "One day left for the U.S. government to shut down.) Trump advocates: Completely abolition of the federal debt ceiling. This article was first published on BlockTempo (the most influential blockchain news media).