SpaceX and Tesla CEO Elon Musk, who now advises the incoming president Donald Trump, warned on Tuesday that the new government in Washington could slow the growth of Bitcoin prices.Musk will head the newly-created White House advisory office named D.O.G.E.
It’s a play on the Texas techno king’s love for Dogecoin and an acronym that stands for Department of Government Efficiency.
DOGE Aims to Whip Inflation Now
We either fix this or go de facto bankrupt https://t.co/hmjpx6uBfd
— Elon Musk (@elonmusk) December 26, 2024
The magnetic tech engineer has advised the once and future president Trump broadly on a number of matters relating to technology, business, and public policy.
His ideas for more government efficiency could help cut back overspending in Washington, DC, slow the growth in the federal budget deficit, and help curb rising prices across the economy due to inflation.
High deficits cause inflation as government spending gooses the velocity of money in the economy and drives up prices. Meanwhile, new dollars created by the Federal Reserve and loaned to banks to buy the government’s debt inflate the dollar and increase prices as well.
One recent study by the Princeton University Department of Economics estimates US budget deficits in 2021 caused about 30% of the US dollar inflation in 2021-22.
Rising prices as a result of big spending in Washington start in financial markets, then ripple through the economy until the#BinanceAlphaAlert y push up prices at the gas pump and grocery checkout