DOGE AND GOLD

 

The Republican economy is placing a tremendous amount of faith in the ability of DOGE - a billionaire controlled department that will slice waste out of the budget to cover the 2-3 trillion dollar deficits that the republican budget will be running each year.

That's about the amount DOGE is claiming it will cut out of the deficit.

How will they do that?

Well, 80 perent of the US budget goes to paying for A) Defense - (the republicans have pledged to increase the Defense budget to modernize our weapones sytems)

B) Interest on the Debt (Even the US must pay interest on its debt), and the debt keeps growing at parabolic rate year over year.  In fact, interest on the Debt now is the single greatest component of the budget.  And as most of our debt is funded at the long end of the yeild curve  - it is impervious to all Federal Reserve actions save Yeild Curve Contorl (which would send gold to the stratosphere).  

Cand D) Social Security - and Medicaire.  Nobody will ever touch social security - for one thing it's not a transfer payment, it's money that has been payed into the government by workers and is owed back to the workers on retirement.  So cutting that is just pure theft and it is theft from the largest voting block in America.  Touching that is political suicide.  Medicaire  perhaps can be toyed with at the fringes if the ruling party again wants to flirt with political suicide.

So what does that leave?  

Well, infrastructure - which is badly delapidated in this country.  Cutting spending there will lead to terribly unsafe roads and rail systems which could cost far more in accidents than it would save.  

Veterans health care.  That would save a tiny amount while abandoning everyone who has served this country in the armed forces.

Education. That would save a tiny amount while serving to vastly increase the divide between rich and poor in this country,  That will prove to be social suicide because that divide is what is making this country the most dangerous country in the entire First World.  Most other first world countries have travel advisories in effect for their citizens travelling to the US because of violence here - especialy mass gun violence.  It is impossible to say that all the mass gun violence is due to the rich/poor divide.  But certainly some of it is.  So far I don't think a single mass murderer has come from the Billionaire class.  Maybe if we increase the amount of hopes and prayers we use to combat this plague we'll get it under control.  So far that hasn't worked very well.

Cutting education to the poorest element in society in the long run is probably the absulute dumbest thing we could do.

So good luck to DOGE.  

I'm sure they'll figure something out being billionaires.  But on the face of it it seems they'll end costing the government money simply because they are adding another government agency that requires funding. 

So I think we can pretty well count on the 2-3 trillion dollars deficits the Republicans are planning on running - as a fait accompli.  That is terrible for our economy.  But it is great for GOLD.