Chief Investment Strategist, The Freeport Society
It’s official…
The tenure of President Trump’s “First Buddy,” Elon Musk, as head of the Department of Government Efficiency (DOGE) is drawing to a close.
During Tesla’s quarterly earnings call on April 22, Musk said he plans to work no more than one or two days a week at the government efficiency commission going forward.
I wanted – and still want – DOGE to be successful. A smaller, more efficient government is better for us all, whether you’re a Democrat, a Republican, or indifferent to politics.
The Freeport Society was founded on the idea that a smaller government is critical to a free economy that generates wealth for all its citizens.
But wishing for something doesn’t make it real.
Musk made a lot of noise, generated a ton of press, and shook things up.
But as we’ll look at today, he failed in his mission to make significant cuts to government spending.
That means more rising debt and deficits… and a looming dollar crisis.
That crisis is baked in. There’s no escaping it at this point.
But you can prepare for it. And we’ll cover a few ways to do that shortly.
Musk’s Math Doesn’t Add Up
Trump’s executive order that created DOGE was uncharacteristically modest.
Its goal was “modernizing Federal technology and software to maximize governmental efficiency and productivity.”
There was nothing about mass layoffs, shutting down all foreign aid, or any of the other things DOGE has come to be associated with. Its original mandate was to give Uncle Sam an IT upgrade.
Well, it didn’t exactly work out like that.
As far as we know, DOGE hasn’t made any significant software upgrades or made systems more efficient. From the get-go, its focus shifted to firing people and shuttering offices.
Of course, if we want a smaller government, reducing headcount is part of the solution. And in terms of downsizing, it’s had a huge impact.
According to numbers from Politico, nearly 250,000 workers have or are expected to leave their federal jobs.
That includes more than 112,000 federal workers who have opted into the deferred resignation program. It also includes about 121,000 workers across agencies who have been fired.
The problem is that these job cuts haven’t yielded the budget cuts Musk promised.
He said he’d chop $2 trillion in government spending. But when you consider that the entire non-military discretionary budget was $919 billion in 2024, that was never a realistic goal.
By its own reckoning, DOGE saved only about $160 billion.
The problem is those numbers haven’t been independently verified, and most independent estimates put the figures far lower. Some observers have gone as far as to claim that DOGE actually cost the government money.
Take the Partnership for Public Service. It’s a nonpartisan, nonprofit organization that’s dedicated to revitalizing the U.S. federal government.
It estimates that the DOGE cuts cost the government $135 billion in paid leave expenses, rehiring mistakenly fired workers, and lost productivity.
It’s hard to know who’s telling the truth.
But going by Washington’s own figures, overall federal government spending is actually up this year versus last year.
In the first 100 days of Trump’s second term, the U.S. government spent about $220 billion more than during the same period last year.
And the budget deficit is projected to be $1.9 trillion this year.
That means, by the end of the year, the national debt will reach $38 trillion.
It will continue rising at $2 trillion or more a year until the house of cards eventually collapses.
In short, despite Musk’s efforts, our debt crisis continues to snowball.
So what do we do?
Buy “anti-dollars.”
It’s Time to Buy These “Anti-Dollars”
In Musk’s defense, he never had the power to make real cuts.
The power of the purse ultimately belongs to Congress. And while both parties love to talk a good game about fiscal responsibility, neither has made any real effort to rein in spending.
Over the past two decades, we’ve had Republican presidents running the country alongside a Republican-controlled House and Senate. We’ve had Democrat presidents with Democrat majorities in Congress. And we’ve had every possible permutation of one party in the White House and the other with control of at least one house of Congress.
It doesn’t matter. There’s been no measurable slowdown in spending regardless of who is in charge.
Eventually, investors will lose faith in U.S. government bonds and in the dollars they’re denominated in.
The question is: How do we protect ourselves from this inevitability?
There is no perfect hedge. A crisis of confidence in the dollar will be ugly, no matter how it plays out.
But “anti-dollars” such as gold and Bitcoin provide a strong degree of protection.
I recommended both when we launched our flagship Freeport Investor advisory in December 2023. So far, we’re up 127% in Bitcoin and 63% in gold.
So, which should you buy?
Both.
And you can get them in the same ETF via the STKd 100% Bitcoin & 100% Gold ETF (BTGD).
This exchange-traded fund does exactly what its name suggests. It gives you 100% of the movement in gold and 100% of the movement in Bitcoin, all within one ETF.
Note that this doubling of concentration effectively makes BTGD a leveraged ETF. So, use common sense when sizing this position. But if you’re looking for a quick way to get access to the two most reliable hedges from dollar calamity, BTGD is a solid option.
Whether it’s gold, Bitcoin, or both, just make sure you get these “anti-dollars” into your portfolio.
To life, liberty, and the pursuit of wealth.
P.S. I was talking to InvestorPlace Senior Investment Analyst Luke Lango recently about his forecasts for the summer. He mentioned 1997… and how that was the last time we saw a particular event that sent investors into a “panic.” He believes we’re witnessing the same environment developing now. I agree. The parallels between now and 30 years ago are eerie. Tomorrow night, Thursday, at 7 p.m. ET, Luke is hosting the 2025 Summer Panic Summit to discuss what’s happening now, and what he expects it will lead to. Time is short because he expects May 7 will be the trigger date. He will be giving viewers his investment blueprint to prepare them. I urge you to listen in. One click here will get you instantly on that list.