Gold Stock Fortunes Alert - Buy Back Into Silver Miners
The Bromance Is Over
Elon Musk took on a dirty job when he agreed to lead the eponymous Department of Government efficiency. No politician in their right mind would take on that task.
Going up against public sector unions representing government workers and teachers is a thankless job which would end the careers of most politicians in the next election.
The other significant risk is that even if you display all of the problems with excessive government spending in public, there is no clear way to stop them without votes in Congress.
Since that brings politicians and their re-election chances back into the equation there is a real chance that the DOGE will not succeed in coming close to their reduced spending goals.
When Elon Musk said today that “this massive pork-filled Congressional spending bill is a disgusting abomination” he was declaring war on his former best bud, President Trump.
There is no question that the spending bill will greatly increase the US deficit. Some of that spending was supposed to be offset with saving from government overspending and tariffs.
The degree to which those factors will balance either other out is deteriorating quickly. For one thing the TACO trade has become a meme. It stands for Trump Always Chickens Out. It’s hard to avoid that conclusion because every time it looks like excessive tariffs will be problematic he delays them.
Without gains from spending cuts and tariff income, the spending bill is a massive giveaway that will put government finances in even worse shape.
There is some hope the Senate will instill some discipline, but that is not a bet many are willing to make.
The reason gold remains so steady is because it represents a hedge against the significant risk of the US Dollar losing even more of its purchasing power.
The price continues to trade close to the upper side of the six-week range. The longer it goes sideways for, and allows the overbought condition to be unwound, the better it is for the consistency of the trend.