US Political News and Trump’s China visit
- Thread starter RabzonKhan
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Davey Crockett
Elite Member
Davey Crockett
Elite Member
Davey Crockett
Elite Member
Davey Crockett
Elite Member
RabzonKhan
Trusted Member
- Thread starter
- #3,786
Elon Musk’s D.O.G.E could crash the US economy
Story by Jai Hamid 12/24/24Elon Musk, the billionaire CEO of Tesla, is co-leading the newly formed Department of Government Efficiency (D.O.G.E) with Vivek Ramaswamy under the incoming administration of ‘crypto president’ Donald Trump.
The goal is to slash $2 trillion from federal spending. That’s nearly the size of the US government’s projected 2024 deficit. But here’s the thing, this project might not just fail — it could crash the entire US economy.
The pipe dream
D.O.G.E isn’t even a real government department. It’s an advisory group. It can’t implement anything without Congress or Trump signing off. But Elon’s name carries weight. His involvement alone has turned this into more than a theoretical exercise.The plans are aggressive: massive layoffs, dissolving agencies, and gutting regulations. While Trump and his allies are cheering it on, skeptics are sounding alarms about the possible fallout.
Elon and Vivek are eyeing a government workforce reduction of up to 75%. Three-quarters of federal employees could be shown the door if D.O.G.E’s vision is realized.
But how realistic is this? Not very, say experts. Here’s why: about 75% of the federal budget is mandatory spending. Programs like Social Security and Medicare are untouchable without causing massive political backlash.
That leaves only discretionary spending—about $1.7 trillion—for cuts. Half of that goes to defense, which Trump and his allies are unlikely to touch. What’s left are pennies compared to the grand $2 trillion ambition.
Even the proposed savings from cutting inefficiencies (somewhere between $150 billion and $200 billion) are a drop in the ocean compared to the deficit. The math doesn’t add up.
Government shutdown standoff
Elon’s already flexing his political muscle, and it’s actually making Trump a bit nervous. Just weeks ago, the eccentric billionaire torpedoed a bipartisan deal to avoid a government shutdown. His fiery social media posts rallied Republican lawmakers to block the agreement.He called the appropriations excessive, labeling them as wasteful spending. This has heightened fears of a government shutdown as the holidays loom. If federal operations grind to a halt, the economic impact would be catastrophic.
The 2018-2019 shutdown cost the economy $11 billion. Experts warn that a new shutdown could be even worse, especially with 2025’s inflation and interest rates outlook already creating a fragile economic environment.
And Elon’s influence isn’t even official yet. Imagine what happens when Trump takes office, and D.O.G.E begins to push its proposals more aggressively. The risk of prolonged gridlock in Washington is growing, and the economy will be collateral damage.
A debt crisis in the making
For all its talk of efficiency, D.O.G.E might actually worsen the national debt. The US is already in deep. The national debt is over $36 trillion, and the Congressional Budget Office (CBO) projects it will hit 166% of GDP by 2054. D.O.G.E’s proposals, if they fail to deliver real savings, could accelerate this trend.Here’s how it could play out. First, D.O.G.E’s $2 trillion savings target seems unachievable. If they miss the mark, the government will have no choice but to keep borrowing. That means higher interest payments on the debt, which are already consuming $880 billion a year—13% of the budget.
Second, Trump has called on Congress to eliminate the statutory debt ceiling. While this might avoid debt crises in the short term, it could lead to uncontrolled borrowing in the long run.
Then there’s the wildcard of tax cuts. If Elon’s ideas include reducing taxes without corresponding spending cuts, deficits could explode. Trump’s first term added nearly $8 trillion to the debt, partly because of tax breaks. If D.O.G.E follows a similar playbook, the debt problem would spiral out of control.
Markets are on edge
As we’ve reported in the past, financial markets aren’t immune to D.O.G.E’s grand plans. Investors are watching nervously, and for good reason. Analysts say Elon’s cuts could create a “deflationary shock.” Bond yields are already rising, making borrowing more expensive for businesses and the government alike.Yields have jumped from 3.6% in September to 4.46% now. This creates a liquidity crunch. Companies struggling to access cheap capital may cut back on investments, leading to slower economic growth. Stock markets could take a hit as investors shift toward bonds, which are seen as safer in uncertain times.
Of course that would also affect the crypto market, especially Bitcoin which remains stubbornly correlated with US equities, and Dogecoin (DOGE) which shares a name with the so-called department.
There’s also the fear of reduced consumer spending. If D.O.G.E’s cuts target entitlement programs like Social Security, millions of Americans could lose disposable income. That would affect the economy, hurting everything from retail sales to housing markets.
RabzonKhan
Trusted Member
- Thread starter
- #3,787
Aren't you aware of the U.S. State Department official Donald Lu secret diplomatic cable, or cypher, sent by then-Pakistani ambassador to the U.S. Asad Majeed Khan? According to Ambassador Khan's purported cable, the State Department official (Donald Lu) at the meeting encouraged Ambassador Khan to tell Pakistan's military establishment that Islamabad could expect warmer relations if PM Imran Khan was removed from office because of his neutrality on the Russian invasion of Ukraine.
Additionally, Biden ignored Imran Khan, contrary to diplomatic custom, no communication was made between Biden and Imran after Biden was sworn in. It doesn't seem to me as non-intervention.
However, I share your belief that the United States should adopt a non-interventionist approach.
RabzonKhan
Trusted Member
- Thread starter
- #3,788
To begin with, I am not a politician; rather, I am a concerned citizen who understands the vulnerability of our democratic system. Democracy is not a given, its citizens must be watchful and actively participate. We must continue to get involved in order to balance the overwhelming power of wealth in politics. In the end, active civic participation is essential because it guarantees that democracy will stay open to all citizens and not become a space dominated only by those with financial clout.
Just so you know, Pakistan's trade with the United States has risen under the Biden administration. I'm sure many Pakistanis are unaware that the United States is one of Pakistan's longest and most important economic partners, as Pakistan profits greatly from a significant trade surplus with the United States. Source
Since the US has not put any sanctions on US-Pakistan commerce, Pakistan has the chance to significantly boost its trade with the US. The recent US-China trade conflict provides a great chance for Pakistan to considerably increase its commerce with the US, especially if China actively invests in Pakistan's trade-related industries. As tariffs placed by the US on Chinese goods disrupt established supply chains, China has begun to shift it manufacturing and investment to nations such as Vietnam, Thailand, Malaysia, and Mexico. This shift demonstrates a strategic tilt that could benefit Pakistan if it markets itself as an alternative manufacturing base.
While some may claim that Trump's presidency will revitalize engagement with Pakistan, I believe such expectations are mistaken. The historical context of US-Pakistan relations exposes a complicated web of distrust and shifting alliances, exacerbated by Pakistan's status as a Muslim-majority country with nuclear weapons. This geopolitical landscape has long been molded by powerful interests in the United States that see Pakistan as a threat. As a result, it is unlikely that Trump's interest in Pakistan goes beyond symbolic gestures.
Some Imran Khan supporters are feeling hopeful after Richard Grenell was recently appointed as Trump's special envoy, but this excitement might be misplaced. The fundamental dynamics between the two countries indicate that any chance for a cordial relationship is still thwarted by long-standing prejudices against Pakistan, even in spite of Grenell's demands for Khan's release from prison. Under Trump's leadership, the power of anti-Pakistan groups in Washington is probably going to continue, if not increase.
In the end, even while I'm still willing to be proven incorrect about these conclusions, the data suggests that the U.S.-Pakistan relationship will remain difficult no matter who holds the White House.
EugeneP
Trusted Member
If a lowly official like Donald Lu's off hand comment can topple the government in Pakistan (from 10,000-kilometer distance, no less), don't you think Pakistan's policy of national security uber alles is an utter failure and is in ashes? BTW, Biden not only ignored Imran Khan, but he also ignored Sharif. So much for preferred government. If Trump ignores Sharif, as is likely, does that mean his administration wants to depose him?
Davey Crockett
Elite Member
Davey Crockett
Elite Member
"*****, my son. Donald, Elon and Vivek are calling us to America."
He’s already got a Baba Elon cult in India.
He’s already got a Baba Elon cult in India.
Davey Crockett
Elite Member
FuturePAF
THINK TANK: CONSULTANT
At the very least, if the H-1B visa issue is brought to center stage, it will reveal if the immigrants are actually better talent then American workers, or if a significant percentage are just using it as a way to immigrate, without giving the US exceptional talent.
We need the best talent to come to America, to give us the best advantage, but giving a regular coder or someone with a Masters or PhD from a mediocre university will suppress American workers wages or training/education prospectives.
Even Indian media is talking about H-1B visa fraud or as many call it, a loophole, consultancies.
Elon and Vivek seem to be against the “luck” aspect and want to prioritize some workers over others. But is it on merit or some other favor they can use to extract more influence down the line as heads of “DOGE”.
American workers deserve to be trained to be able to do these jobs. Someone should audit these jobs to see if Americans aren’t available to do these jobs.
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