The U.S. federal government's spending has hit $7.0 trillion over the past 12 months—a level that sends shivers through markets. Only once have we seen higher figures: during 2020-2021 when pandemic relief and economic recovery efforts pushed spending to around $7.8 trillion on a 12-month basis.

Why should you care? Government spending at these levels directly impacts inflation expectations, interest rate trajectories, and ultimately, asset valuations across crypto and traditional markets. When fiscal deficits balloon this hard, it forces central banks into uncomfortable positions—creating ripple effects throughout the financial system.

Historical precedent matters here. The 2020-2021 spending spike preceded substantial market repricing. Today's levels suggest we're approaching critical decision points around monetary policy and currency dynamics. For investors navigating this environment, understanding these fiscal pressures becomes essential context for positioning in both traditional and digital assets.