Trump v Musk is the final battle before a catastrophe
Who needs reality TV when there's the psychodrama of Donald Trump's White House to keep us all entertained? As plot lines go, the falling out between Trump and Elon Musk was perhaps about as predictable as they come, but the sheer venom, speed and combustibility of the divorce has nevertheless proved utterly captivating.
Even the best of Hollywood scriptwriters would have struggled to do better. The stench of betrayal hangs heavy in the air, a veritable revenger's tragedy of a drama.
Beneath it all, however, lies a rather more serious matter than the sight of two of the world's richest and most powerful men breaking up and exchanging insults.
And it's one that afflicts nearly all major high-income economies. Slowly but surely – and at varying speeds – they are all going bust. Yet few of them seem even capable of recognising it, let alone doing anything to correct it.
None more so than the United States, where the Congressional Budget Office last week estimated that Trump's 'one big, beautiful bill' would add a further $US2.4 trillion ($3.7 million) to the national debt by 2034.
Loading
Let's not take sides, but Musk was absolutely right when he described the bill as 'a disgusting abomination'. It taxes far too little, and it spends far too much. It is hard to imagine a more reckless piece of make-believe.
Musk had backed Trump not just out of self-interest – more government contracts, protection of the electric vehicle mandate, personal aggrandisement and so on – but because he genuinely believed he could help stop the US from bankrupting itself.
This has proved a monumental conceit. The $US2 trillion of savings in federal spending he initially promised has turned out to be at most $US200 billion, and probably substantially less once double accounting and wishful thinking is factored in.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Perth Now
28 minutes ago
- Perth Now
Wall St dips as Middle East tensions rise, Boeing drops
Wall Street's main indexes have slipped as signs of rising tensions in the Middle East hurt risk sentiment and investors sought more clarity on Washington's recent trade deals with China. Boeing declined 4.7 per cent after an Air India 787-8 Dreamliner jet crashed minutes after taking off in India's western city of Ahmedabad, killing more than 200 people. Underscoring increased volatility in the Middle East, President Donald Trump said on Wednesday US personnel were being moved out of the region as it could be a "dangerous place" and the United States would not allow Iran to have a nuclear weapon. "The clearing out of our embassies in the Middle East of non-essential employees sends a signal that we're anticipating some turbulent times," said Kim Forrest, chief investment officer at Bokeh Capital Partners. A senior Iranian official said on Wednesday Tehran will strike US bases in the region if nuclear negotiations fail and conflict arises. China on Thursday affirmed a trade deal with the US, saying both sides needed to abide by the consensus. Traders are still waiting for more details on the trade framework discussed. In early trading on Thursday, the Dow Jones Industrial Average fell 140.49 points, or 0.33 per cent, to 42,725.28, the S&P 500 lost 5.58 points, or 0.09 per cent, to 6,017.36 and the Nasdaq Composite lost 39.52 points, or 0.20 per cent, to 19,576.35. Five of the 11 major S&P 500 sub-sectors fell. Communication services dropped the most, with an about 0.7 per cent decline, while utilities gained 0.8 per cent. Alphabet declined 1.1 per cent, while Nvidia nudged 0.3 per cent higher. Among other movers, Oracle shares rose 12.1 per cent after the cloud service provider raised its annual revenue growth forecast. US-listed shares of gold miners also advanced, as bullion prices hit a one-week high. Newmont gained 2.4 per cent, Harmony Gold was up 2.1 per cent and AngloGold Ashanti rose 5.2 per cent. After a tame consumer price report on Wednesday, softer-than-expected producer price data and largely unchanged initial jobless claims helped reduce investor jitters around tariff-driven price pressures. Traders are pricing in 53.7 basis points of rate cuts by year-end, per data compiled by LSEG. They are penciling in a 60 per cent chance of a 25 bps cut in September, according to the CME Group's FedWatch tool. Policymakers are widely expected to keep rates unchanged next week. With investors increasingly expecting Trump to reach favourable trade agreements with several countries in the coming weeks, the benchmark S&P 500 index is just 2.1 per cent below its record high touched in February. The tech-heavy Nasdaq is about 2.9 per cent from record levels hit in December. Goldman Sachs trimmed its US recession probability to 30 per cent from 35 per cent on easing uncertainty around Trump's tariff policies. Declining issues outnumbered advancers by a 1.35-to-1 ratio on the NYSE and by a 2.03-to-1 ratio on the Nasdaq. The S&P 500 posted four new 52-week highs and three new lows while the Nasdaq Composite recorded 24 new highs and 39 new lows.
West Australian
30 minutes ago
- West Australian
Wall St dips as Middle East tensions rise, Boeing drops
Wall Street's main indexes have slipped as signs of rising tensions in the Middle East hurt risk sentiment and investors sought more clarity on Washington's recent trade deals with China. Boeing declined 4.7 per cent after an Air India 787-8 Dreamliner jet crashed minutes after taking off in India's western city of Ahmedabad, killing more than 200 people. Underscoring increased volatility in the Middle East, President Donald Trump said on Wednesday US personnel were being moved out of the region as it could be a "dangerous place" and the United States would not allow Iran to have a nuclear weapon. "The clearing out of our embassies in the Middle East of non-essential employees sends a signal that we're anticipating some turbulent times," said Kim Forrest, chief investment officer at Bokeh Capital Partners. A senior Iranian official said on Wednesday Tehran will strike US bases in the region if nuclear negotiations fail and conflict arises. China on Thursday affirmed a trade deal with the US, saying both sides needed to abide by the consensus. Traders are still waiting for more details on the trade framework discussed. In early trading on Thursday, the Dow Jones Industrial Average fell 140.49 points, or 0.33 per cent, to 42,725.28, the S&P 500 lost 5.58 points, or 0.09 per cent, to 6,017.36 and the Nasdaq Composite lost 39.52 points, or 0.20 per cent, to 19,576.35. Five of the 11 major S&P 500 sub-sectors fell. Communication services dropped the most, with an about 0.7 per cent decline, while utilities gained 0.8 per cent. Alphabet declined 1.1 per cent, while Nvidia nudged 0.3 per cent higher. Among other movers, Oracle shares rose 12.1 per cent after the cloud service provider raised its annual revenue growth forecast. US-listed shares of gold miners also advanced, as bullion prices hit a one-week high. Newmont gained 2.4 per cent, Harmony Gold was up 2.1 per cent and AngloGold Ashanti rose 5.2 per cent. After a tame consumer price report on Wednesday, softer-than-expected producer price data and largely unchanged initial jobless claims helped reduce investor jitters around tariff-driven price pressures. Traders are pricing in 53.7 basis points of rate cuts by year-end, per data compiled by LSEG. They are penciling in a 60 per cent chance of a 25 bps cut in September, according to the CME Group's FedWatch tool. Policymakers are widely expected to keep rates unchanged next week. With investors increasingly expecting Trump to reach favourable trade agreements with several countries in the coming weeks, the benchmark S&P 500 index is just 2.1 per cent below its record high touched in February. The tech-heavy Nasdaq is about 2.9 per cent from record levels hit in December. Goldman Sachs trimmed its US recession probability to 30 per cent from 35 per cent on easing uncertainty around Trump's tariff policies. Declining issues outnumbered advancers by a 1.35-to-1 ratio on the NYSE and by a 2.03-to-1 ratio on the Nasdaq. The S&P 500 posted four new 52-week highs and three new lows while the Nasdaq Composite recorded 24 new highs and 39 new lows.
Sky News AU
3 hours ago
- Sky News AU
Trump administration using AUKUS review to pressure Albanese on defence spending
Sky News host Sharri Markson has suggested the Trump administration is allegedly using the AUKUS review as leverage to pressure Prime Minister Anthony Albanese into boosting defence spending. 'The United States President and his officials are frustrated, firstly Albanese's refusal to increase defence spending,' Ms Markson said. 'Secondly, his flippant attitude that defence is an issue of sovereignty, and they're concerned about his commitment to the alliance and his refusal to robustly call out China's aggressions in our region. 'Confidential sources told me today the Trump administration is extremely serious about needing Australia to lift its game on defence spending, and this is irrespective of Jim Chalmers' budget constraints.'
