Reducing spending “several trillion” is literally and structurally impossible. Full stop. (I won’t even address the 50 percent defense spending cut nonsense 🤪)
Congress would have to approve the cuts to the “mandatory” spending line items which are, in fact, the majority of the budget outlays. NEVER GONNA HAPPEN.
But even in a 1trn spending cut version of this magical/impossible scenario you paint, the global economy would be thrust into a deflationary spiral so draconian that it would make the great depression look like a walk in the park.
I admire and applaud the effort they are putting in, but it has absolutely ZERO chance of making any real difference in the short or intermediate term. (Which is all this system has left)
I see a massive sovereign debt and risk asset collapse coming after the debt ceiling is extended later this year. Early 2026 at the absolute latest.
Then they (G4, not just US) will print/monetise like they have never done before. 10s of trillions of new fiat to paper over the collapsing debts.
The few hundred billion that DOGE saved the US taxpayers will be dwarfed by the collapse of tax revenues from non existent cap gains at that point and an explosion of unemployment benefits.
FY 2025 (already in its 5th month) deficit will be north of 2Trn and 2026 deficit will be 3-4 Trn.
They will blame ALL this on Trump and Elon even though this was baked in LONG ago…..
There is truly NO stopping this train….
🚊 💵 💴 💶 🔥
Own Bitcoin and (a little) Gold. Safely self custodied. And prey that the fabric of society holds during this civilisational transition. I sense it will. But only just barely.
What is waiting on the other side is unfathomably spectacular 👁️💓🧬🦋