Deutsche Bank: Musk's government appointment could have catastrophic consequences for the economy

On November 14th, according to a report by Jin Ten, Trump will appoint Musk (together with Ramaswamy) to lead the new Office of Government Efficiency. Musk announced during the election campaign that he would cut US federal government spending by 2 trillion dollars (nearly one-third). Ulrich Leuchtmann, head of foreign exchange and commodities research at Deutsche Bank, pointed out that this would have disastrous consequences for the US economy: "Musk does not believe in a step-by-step prudent approach. I do not believe he can take a sensible step. Some will say that their recommendations will only be recommendations, with the president and Congress ahead of them when they are actually implemented. But if the recommendations will not be implemented, why create such an agency? The president will appear indecisive, which is exactly what Trump does not want. The argument for using aggressive austerity to create dollar benefits is very clever, after all, it will greatly reduce the capital needs of the US Treasury and thus the economy as a whole. Treasuries will become scarce and expensive again. However, I think the dollar's exposure to the inevitable expansionary monetary policy response may prevail in the early days. "