Politico reported yesterday that the Trump White House will send its DOGE package of recommended budget cuts to Congress sometime next week.
DOGE (short for the Department of Government Efficiency) was started back in January as a plan to cut the budget by upwards of $2 trillion.
But Politico reports the amount of recommended cuts to be sent to Congress will be an anemic $9 billion.
That’s enough to fund the government for about a half of a day. Meanwhile, the budget deficit for 2025 is expected to reach over $1.3 trillion, with interest expense alone over $1 trillion.
At the same time, the Trump administration already announced over $150 billion in new defense spending.
Maybe Politico is wrong. They are, after all, one of the news organizations that’s received funding from USAID, the agency most publicly targeted by DOGE for cuts.
Maybe the DOGE cuts will be $90 billion – enough to fund the Federal Government for 5 days. Or maybe the cuts will be $900 billion… that’s still not enough to negate this year's deficit.
My point:
After months of campaigning on cutting spending and increasing oversight on waste and corruption, Trump seems to be falling well short…
For people who pay attention to political promises about spending, this development comes as no surprise. And for gold investors… It's more positive news for the long term price of the metal.
And it means that despite all of the drama and handwringing about DOGE cutting off the pork, it doesn’t seem like it’s happening.
For one, the real cost centers for the Feds are not in minor cabinet agencies like USAID… The real big ticket items are Defense spending, Medicare and Social Security. If Trump and DOGE don’t take a big bite out of those three cost centers, then they won’t be able to put a dent in spending or undo the deficit.
Another problem: just because Trump sends spending recommendations to Congress does not mean Congress will follow through. We’ll see…
But right now, gold is still well above $3,000. And major gold miners seem to be buying in.
We’ve already seen 3 major mining companies make significant investments in junior miners in some of our portfolios.
We might be looking at a frantic acquisition period as major companies try to position themselves for even higher priced gold.
Stay tuned…
Good investing,
Garrett Goggin, CFA
Chief Analyst & Founder, Golden Portfolio
The Quiet Gold War No One’s Watching
The headlines said the U.S. and China struck a trade deal.
But look closer…
China’s not buying US Treasuries. It’s buying gold. Tonnes of it—both officially and unofficially.
Why? Because when the U.S. sanctioned Russia and froze $300 billion in assets, the message was clear:
US dollar assets are no longer safe.
That’s left Treasury Secretary Scott Bessent with a dilemma – no organic demand for U.S. debt.
The Fed will soon be forced to fill the gap—again… which means QE4 isn’t a question of if, but when.
That’s why the whispers of a “Mar-A-Lago Accord”—a new monetary arrangement that re-anchors gold at the heart of the global system are growing louder…
Whatever you do, make sure you own the right gold companies BEFORE a new any “Mar-A-Lago Accord” becomes official. It’s coming.
And all you have to do is own the right gold miners ahead of it.
That’s why I’ve released the names and tickers of three new picks to my Golden Portfolio 10X readers on May 14 – this portfolio holds 30+ gold companies all with 10X upside potential in this gold bull market.
And it includes my three newest recommendations.