Arthur Hayes, in his latest blog post, argues that President Trump is unlikely to finance deficits through tax cuts, as the 2017 tax cuts have already been extended by Republicans. The U.S. Treasury is borrowing to cover federal deficits and will continue to do so. The Standing Repo Facility (SRF) allows banks and financial institutions to use eligible securities, mainly U.S. Treasuries, as collateral to obtain cash from the Federal Reserve when liquidity is tight. Currently, the Treasury is borrowing through debt auctions, which negatively impacts dollar liquidity, but has not yet spent the funds, creating a positive liquidity effect. This liquidity siphoning is cited as a reason for the current weakness in the crypto market.