Trump And Elon File For Divorce Over The Big Spending Bill That Will Drive Gold Much Higher - Got Gold?
The divorce between Trump and Elon is official and both have dropped the gloves. It is about to become the most epic divorce ever.
Now that Elon has left Washington, he is going off on the big spending bill and trying to repair his image damaged by his foray into politics. Trump being Trump is fighting back with his own slings and arrows on social media.
For Elon to be surprised that a spending and debt junkie wants his fix is disingenuous. Trump was a spending and debt addict in his first term and clearly wants more of the same in his second term. And the evidence that he hadn’t changed since getting back into office was there for everyone to see, including Elon.
Upon Trump getting back behind the Resolute Desk, he started with tariffs that Elon had to know would slow the economy and cause inflation to increase and bring on stagflation.
Then the Trump and his GOP team wanted to keep the Biden spending in place and then crammed through the big spending bill that causes the deficit to keep getting larger and also want an increase to the debt limit or its elimination.
All of that was hunky-dory while Elon was in Washington, but now that he has left, it only took a few days for Elon to go ballistic. He threw in the towel on his DOGE efforts and has now buried them completely as Trump will be doing everything to erase the memory of Elon and DOGE immediately.
That’s what happens when you put two giant egos together and they decide that the marriage is over.
While Elon is trying to repair his image that was tarnished by his foray into politics, he is conveniently forgetting that he helped get a spending and debt junkie elected.
The failure of DOGE is not only the GOP politicians fault. Elon turned it into a political tool to only go after waste, fraud and abuse by the Democrats while turning a blind eye to the same activities by Republicans. Equally as troublesome was that DOGE focused on departments that have oversight over his companies.
To make matters worse, on the campaign trail Elon talked about $2 trillion of savings, then ratcheted that down to $1 trillion and before he left admitted that it was only really a couple hundred billion. Nothing more than a rounding error.
Now that Elon and Trump are in a war of words, Elon has basically thrown DOGE under the bus. Trump will completely demolish DOGE for two reasons, one is out of spite against Elon, but more importantly to him it will allow him to go crazy with his spending and debt addiction.
DOGE wanted to eliminate government workers, but now that Elon has dropped the gloves against Trump, the DOGE workers will be the ones eliminated. It will only take a week or so for Trump to wipe DOGE off the Washington political landscape.
The big spending bill will create the biggest deficits ever, worse than Biden’s deficits. Trump and his team know that the spending and debt will be out of control which is why they want to raise the debt ceiling by $4-5 trillion or eliminate it completely.
Even if they raise it by $5 trillion, at best that will only cover a couple of years worth of deficits. If they cause alarming stagflation, it will only last for a little over a year.
Which is why Trump is agreeing with Elizabeth Warren and wants to eliminate the debt ceiling completely. No wonder Jamie Dimon and others are sounding the alarms about cracks in the debt market.
The supply of debt is already massive and enticing buyers to keep the house of cards from caving in is a monumental task. Bessent can talk about growing the economy faster than the debt, and wanting to take the shackles off the banks to have no restraint on their abilities to crank up their leverage. Or even hoping that the stablecoins can help soak up the massive supply of debt.
The fact that he is assuring the market that America will never default on its debt speaks volumes about what he sees in the debt market. Just talking about it means that he knows there are huge problems.
Just when the US debt market needs buying from foreigners, Trump has done everything he can to alienate them with his tariff tantrum.
The war between Elon and Trump even overshadowed the first discussions between Trump and China’s Xi Jinping. They talked on the phone today, but very few details have come out which is a pretty good sign that it was a nothingburger.
The negotiations since Trump relented on the most severe tariffs, there has been very little movement on actually getting trade deals negotiated and signed. The 90-day period to move toward trade agreements will come and go. So the uncertainty is going to continue being troublesome for consumers and businesses.
Stagflation is going to get much worse, they can play with the economic numbers to overstate growth and understate inflation, but that doesn’t change the economic reality to consumers and corporate leaders.
The Death Spiral of Debt is about to get much worse as the spending and debt growth is about to blast off due to the big spending bill. All made worse by the unsustainable cost of servicing the debt.
If generalist investors didn’t get gold and gold stocks before, they certainly should now. Doing that before the stagflation becomes obvious to everyone is a wise decision.
All roads lead to gold and gold stocks.
All the best,
Allan Barry Laboucan
Julien, he obviously take poll with Trump because he benefit His xspace and others company Elon has
Elon was the useful idiot in this story. Very sad.