Written by Bryan Lutz, Editor at Dollarcollapse.com:
Elon has left the building.
No more toddlers running around the DOGE office, getting babysat by Trump on the White House lawn, or fluffy camera filled cabinet meetings.
Elon is out of the White House, and he’s disgusted…
Actually, he’s on the tail-end of disillusionment.
He thought he could save $2 Trillion.
Instead, DOGE is saving what seems like pennies – just a few billion.
NewsWeek reports:
Elon Musk Calls Trump’s Big Bill ‘Disgusting Abomination’
“Elon Musk launched a scathing attack on President Donald Trump’s marquee spending proposal Tuesday, calling the so-called “big, beautiful bill” a “disgusting abomination” in a series of posts on X.
Musk, who leads the White House’s Deficit Optimization & Government Efficiency (DOGE) office, said the bill is packed with “outrageous pork” and accused lawmakers of knowingly voting for legislation that would balloon the federal deficit.
The comments were posted just as White House Press Secretary Karoline Leavitt held a press briefing.
She dismissed Musk’s earlier remarks to CBS about his disapproval of the bill, saying, “The president already knows where Elon Musk stood on this bill.”
The Committee for a Responsible Federal Budget estimates the legislation would add $2.5 trillion to the deficit over the next decade.”
As it turns out budget makers, and the central bankers are just as confused.
Over in England, the cost of living is causing central bankers to think twice.
The decision here is one they know they’re going to regret.
They’re already considering opening the flood gates.
Reducing rates.
Money printing.
Flooding the currency market with more pounds…
Devaluing the currency the same way the dollar is dropping.
Reuters reports:
Bank of England’s Mann says QT impact needs to be reconsidered
“The Bank of England needs to pay closer attention to the impact of its quantitative tightening programme on monetary and financial conditions now that it is cutting interest rates, BoE policymaker Catherine Mann said on Monday.
The British central bank makes a decision on the pace at which it reverses its past quantitative tightening once a year, with a next decision due in September.
Last month, Mann and BoE chief economist Huw Pill voted to keep interest rates on hold at 4.5% rather follow the majority decision to cut rates to 4.25%, due to their concerns about persistently high inflation.”
While over in Japan, a similar situation is adding up to the same conclusion.
Central bankers are looking at moving inflation up to 2%.
Basically, they’re going to print more money.
And they’re going to buy less bonds.
So less QE as a solution to punch down their treasury bond yields, except their longest term treasury bond yields just hit a new all-time-high.
Bloomberg reports:
BOJ’s Ueda Hints at Likelihood of Continuing to Cut Bond Buys
“Governor Kazuo Ueda hinted at the likelihood that the Bank of Japan continues to slow the pace of government bond purchases next fiscal year and stressed the bank’s expectation for economic forces to continue moving inflation toward its target…
…While BOJ watchers expect policymakers to keep rates unchanged when they conclude a two-day meeting on June 17, bond traders are closely watching how the central bank, the biggest holder of Japan’s government debt, will taper its bond purchases after more than a decade of large-scale monetary easing.
Ueda indicated the bank will keep the existing plan for cutting bond purchases by ¥400 billion ($2.8 billion) per quarter through March, by saying there were “limited” views demanding its revision.
Between Ueda’s remarks at parliament and his afternoon speech, stronger demand in a 10-year Japanese government bond auction brought some temporary relief as traders position for another sale in less than 48 hours that will test appetite for longer-dated debt.
Japan’s 30-year bond yields hit the highest on record last month, signaling a broken balance of supply and demand in super-long bond yields.
That has generated greater attention on the BOJ decision over its bond purchasing plan in two weeks’ time.”
Most of the West seems to be turning to the money printer to make the same old Keynesian magic happen:
“As long as GDP go up, we can keep going into debt.”
Canada’s newest Prime Minister, Mark Carney, former Governor of the Bank of England has a similar unlined plan.
He’s been promising money to all…without a budget.
And at the same time, he’s spending about $20 Billion more than Trudeau’s government at $468 Billion.
According to West, spending more solves the spending problem.
