Elon Musk’s DOGE aims to boost GDP growth to avoid US recession, shifting from spending cuts to economic expansion strategies.
The American economy is precarious amid the Trump tariff conflicts and the increasing US Treasury Yield. Elon Musk’s Department of Government Efficiency (DOGE) has devised a strategy to avert a US recession. According to the tech magnate who is close to the US President, the US debt crisis can be averted by accelerating GDP growth. This implies a clear 180-degree change from the reduction of federal expenditure to its increase.
Elon Musk Discloses DOGE’s Strategy to Prevent the Bankruptcy of the United States
The 10-year Treasury yield has surged to 4.5%, which has sparked growing concerns of a US recession as the Trump tariff war persists. Consequently, the US bond market remains agitated. The probability of a downturn in the United States has increased to 43%, according to the Kalshi data.
Elon Musk has underscored the significance of accelerating GDP growth in preventing the United States from entering bankruptcy. In recognition of DOGE’s endeavors, it is worth noting that:
“DOGE has and will do great work to postpone the day of bankruptcy of America, but the profligacy of government means that only radical improvements in productivity can save our country”.
On Friday, US President Donald Trump threatened the European Union with a 50% tariff, which resulted in a significant decline in Bitcoin and the broader crypto market. Conversely, reports indicate that the United States and India may negotiate a trade agreement within the next seven to ten days. The global markets have experienced significant volatility in recent months due to this tariff flip-flop.
Conversely, Tesla, which Elon Musk leads, maintains its optimism regarding Bitcoin, holding $1.25 billion in the asset class.
Will the Federal Reserve follow suit, as Treasury Secretary Scott Bessent has done?
In response to the increasing concern regarding the US debt, US Treasury Secretary Scott Bessent has implemented a significant shift from the previous position of “we are going to cut spending” to “we are going to grow our way out.” Bessent stated in his most recent interview with Fox News:
“We can both grow the economy and control the debt. What is important is that the economy grows faster than the debt. If we change the growth trajectory of the country, of the economy, then we will stabilize our finances and grow our way out of this”.
Conversely, Austan Goolsbee, President of the Federal Reserve Bank of Chicago, has predicted that the US Federal Reserve may implement interest rate reductions within the next 10 to 16 months.
The Bitcoin price has reversed its gains and is currently trading at $108,237, a 2.6% decline from its all-time peak of over $111K.
