Economic Playbook
The DOGE is going to unleash savings of mega proportions for the US Government. The result is a massive decrease of government jobs and money doled out for non-productive government workers. Initially, we will see a spike in jobless claims and a minor economic contraction.
However, the monetary reaction will be to re-open the spigots via the printing press with lower interest rates. In response we will get an upward swing in metals, cryptocurrencies and stocks. This will be coinciding with decreasing budget deficits meaning the decrease in bond yields may actually be sustainable. What most don’t understand is that Trump and Musk policies will allow the United States Dollar to continue to live a long life versus approaching oblivion.
We are only 1 month into the new administration and in that time have achieved what would normally take years.
The changes are breathtaking. I had similar thoughts regarding the cost cutting restoring faith and being supportive of Treasuries even if they find other things to spend money on…you would think the outlays in the future would contribute more to GDP than transgender festivals in a foreign country. Amen to that!
Good post! If they get the two trillion they are after it puts a whole new perspective on things. Frankly, I never thought I’d see such a thing, and I won’t count the chickens until they’re chirping, but damn! This will put severe pressure on all western countries to reign in their spending as well. Is it possible that sanity is returning to government?
Thanks Dadoc1