A Big, Beautiful, Abomination – Fat Tail Daily | Australian Markets

“I’m sorry, but I just can’t stand it anymore… This massive, outrageous, pork-filled Congressional spending bill is a disgusting abomination.”

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–Elon Musk on Donald Trump’s Big, Beautiful Budget Bill

He drove up in a BMW at great pace and skidded to a halt in entrance of the kitchen.

The door opened…out poked a cane with a silver deal with. There unfolded a tall, dignified man in his 70s. Germanic in his stature. Teutonic in his bearing. Prussian in his method.

His driver’s license had been taken away in his native Germany, so he moved to the South of France. Now he had come to go to us.

Dr. Kurt Richebacher walked with a limp, a memento from WWII. More important had been his recollections of the conflict years in Germany.

“We all knew it was crazy,” the Wehrmacht veteran as soon as advised us, banging his cane on the desk for emphasis.

“But the whole apparatus of the government, politics, the media, big industry — all of it — was lined up to support the war. Big business made its money from the war. Mothers had sent their sons off to fight the war. Politicians argued about the best strategies to win the war… but none really questioned it. You couldn’t oppose it, or you’d be a traitor.”

Kurt reminded us that money isn’t every thing. And there are occasions when having a clear head about it doesn’t help a lot.

We really feel pretty assured in our money outlook: For all intents and functions Donald Trump’s MAGA program goes nowhere.

The ‘reciprocal’ tariffs had been deserted after the stock market started its plunge.

And Elon Musk’s efforts to determine ‘waste, inefficiency and fraud’ obtained the ol’ rug pull when Republican lawmakers failed to incorporate any of the cuts he recognized of their Big, Beautiful Budget Bill (BBBB)

The two packages — the trade conflict and DOGE — had been already caught within the mud. And then, federal courts have ruled them unconstitutional! Yes, after a 90-12 months nap, judges — appointed by Republicans in addition to Democrats — abruptly appeared to wake up… rubbed the sleep from their eyes … and realized that the US Constitution was nonetheless the law of the land.

So these money initiatives are lifeless within the water. So too is probably the most important half of Trump’s financial agenda (though Trump could not understand it), the Big, Beautiful, Budget Bill itself. Any hope of actually making America great again is dependent upon bringing federal spending below control. With the House and the Senate each in Republican palms, it appeared as if there was at the least a probability that spending is perhaps slowed, giving the economic system an alternative to catch up.

But no…that didn’t occur both. And Musk is true. Instead of tightening its federal belt, the BBBB, more than 1,100 pages of grift and grab, is ‘a disgusting abomination.’ It will increase spending…deficits…and the US debt. It is actually ‘more of the same’ that may convey us to a $60 trillion debt within ten years. If…all goes nicely.

In an historic sense, that is accurately. Since 1999, the US empire has been doing the types of issues that empires do after they get long within the tooth and short within the purse — with pointless navy spending, pointless wars, and pointless deficits and debt. These ‘more of the same’ packages merely affirm and reinforce the Primary Trend.

But Kurt was warning us; there are worse issues.

When people obtained despatched to the death camps…or to the Eastern Front… they sometimes forgot to fret about whether or not they had paid the electric invoice. They had different issues to consider. Things more important than money.

And when issues go actually unhealthy, few can say so. In WWII, Germany pursued a preposterously unhealthy financial coverage (directing at one level half the nation’s GDP towards the navy), however economists principally stored their mouths closed.

Kurt knew that from personal expertise. He lived by it. Stuck in a navy hospital for months…he took up the research of economics.

“The Nazis even threatened to put me in prison. But my father still had some influence. He got me sent to the Eastern Front. I’m not sure which was worse.”

And now that the MAGA financial agenda has been clarified, the financial future is predictable. Trade agreements will likely be renegotiated… courtroom selections will likely be challenged and resolved…and the House and Senate will blither and blather and finally keep doing what they’ve been doing for the final half a century.

Senator Rand Paul:

“If I vote for the $5 trillion debt, who’s left in Washington that cares about the debt? The GOP will own the debt once they vote for this.”

The money future is darkish and miserable. But the non-money future will be the one to fret about.

Stay tuned.

Regards,

Bill Bonner,
For The Daily Reckoning Australia

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