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Bernie Sanders says Musk is right on military spending

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“The Pentagon recently failed its seventh consecutive audit, suggesting that the agency’s leadership has little idea how its annual budget of more than $800 billion is spent”

President-elect Donald Trump’s new Department of Government Efficiency has energized Republicans, but it’s also receiving attention from some liberal lawmakers, including Bernie Sanders.

Sanders, the independent from Vermont, wants to help Trump’s DOGE, which is co-led by Tesla CEO Elon Musk and tech entrepreneur Vivek Ramaswamy.

Sanders has his eye on the U.S. military budget.

“Elon Musk is right,” Sanders wrote on X. “The Pentagon, with a budget of $886 billion, just failed its 7th audit in a row. It’s lost track of billions. Last year, only 13 senators voted against the Military Industrial Complex and a defense budget full of waste and fraud. That must change.”

Sanders comments come before the U.S. House is set to vote on a compromise version of the National Defense Authorization Act, which authorizes nearly $900 billion to support U.S. military service members, infrastructure, and defense capabilities during the 2025 fiscal year. The 1,813-page document released Saturday by the Senate and House Armed Services Committees outlines U.S. defense policy priorities and their costs for 2025. Most of the proposed funds, $849.9 billion out of the $895.2 billion topline, would go to programs within the Department of Defense.

Ramaswamy and Musk wrote in a November op-ed that the military is on their list.

“The Pentagon recently failed its seventh consecutive audit, suggesting that the agency’s leadership has little idea how its annual budget of more than $800 billion is spent,” they wrote.

The U.S. Department of Defense’s annual audit once again resulted in a disclaimer opinion. That means the federal government’s largest agency can’t fully explain its spending. The disclaimer this year was expected. And it’s expected again next year. The Pentagon previously said it will be able to accurately account for its spending by 2027.

Musk has gone even farther in his criticism of military spending. He called the military’s most expensive ever project, the F-35 stealth fighter, “obsolete.”

“The F-35 design was broken at the requirements level, because it was required to be too many things to too many people,” Musk wrote on X. “This made it an expensive & complex jack of all trades, master of none. Success was never in the set of possible outcomes. And manned fighter jets are obsolete in the age of drones anyway. Will just get pilots killed.”

TCS - F-35
U.S. Air Force F-35 Lightning IIs from the 356th Fighter Squadron at Eielson Air Force Base fly side by side with Republic of Korea Air Force F-35s from the 151st and 152nd Combat Flight Squadrons as part of a bilateral exercise over the Yellow Sea, Republic of Korea, July 12, 2022. 

In May, the U.S. Government Accountability Office found the cost of the Pentagon’s most expensive weapon system was projected to increase by more than 40% despite plans to use the stealth fighter less, in part because of reliability issues.

The U.S. Department of Defense’s F-35 Lightning II is the most advanced and costly weapon system in the U.S. arsenal. It’s a joint, multinational program that includes the Air Force, Navy, Marine Corps, seven international partners and foreign military sales customers.

The Pentagon has about 630 F-35s. It plans to buy about 1,800 more. And it intends to use them through 2088. DOD estimates the F-35 program will cost over $2 trillion to buy, operate, and sustain over its lifetime.

The Pentagon hasn’t responded to Musk’s comments. Late last month, a reporter asked Defense Department Press Secretary Air Force Major General Pat Ryder about Musk’s comments on the F-35.

“Yeah, as I’m sure you can appreciate, Mr. Musk is, currently, a private citizen, I’m not going to make any comments about what a private citizen may have to say about the F-35.”

Trump set lofty goals for the new group.

“It will become, potentially, ‘The Manhattan Project,’ of our time,” Trump’s announcement said. “Republican politicians have dreamed about the objectives of ‘DOGE’ for a very long time.”

The original Manhattan Project was a research and development project during the second World War that led to the creation of nuclear weapons.

Ramaswamy and Musk have previously outlined their plans for DOGE, which could include mass federal layoffs and reductions in federal regulations. Musk and Ramaswamy said they won’t rely on action from Congress and will instead “focus particularly on driving change through executive action based on existing legislation rather than by passing new laws.”

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Elon Musk, DOGE officials reveal ‘astonishing’ government waste, fraud in viral interview

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From LifeSiteNews

By Doug Mainwaring

Elon Musk said that ‘the sheer amount of waste and fraud’ in federal agencies, is ‘astonishing’ and that DOGE is cutting ‘$4 billion a day’ in misused taxpayer funds.

In a remarkable Fox News interview, Department of Government Efficiency (DOGE) founder Elon Musk and top officials of the DOGE team offered stunning, often infuriating, insights into how the federal government functions.

The interview, which has garnered well over 10 million online views on X in less than 24 hours, provided one extreme example after another of government mismanagement, excess, waste, and fraud while simultaneously promising a future where the D.C. Leviathan is tamed and restored to its proper, efficient role.

The new Deputy Director of the Office of Management and Budget (OMB), former U.S. House Rep. Dan Bishop, averred that the DOGE A-Team interview was the “most amazing and significant half-hour in TV history.” 

Musk was joined by DOGE team members Steve Davis, Joe Gebbia, Aram Moghaddassi, Brad Smith, Anthony Armstrong, Tom Krause, and Tyler Hassen – all successful businessmen and entrepreneurs in their own rights – to describe the widespread systemic weaknesses and failures at the Internal Revenue Service (IRS), the National Institutes of Health (NIH), the Department of Health and Human Services (HHS), the Social Security Administration (SSA), and more.  

Fox host Bret Baier described the group as “Silicon Valley colliding with government.”

“This is a revolution. And I think it might be the biggest revolution in government since the original revolution,” said Musk during the discussion.  

“But at the end of the day, America’s going to be in much better shape,” he promised.

“America will be solvent. The critical programs that people depend upon will work, and it’s going to be a fantastic future.” 

Musk said that the most stunning thing he’s discovered during the early phases of DOGE is “the sheer amount of waste and fraud in government. It is astonishing. It’s mind-blowing.”

Musk cited the example of a simple 10-question National Park online survey for which the government was charged nearly $1 billion and which in the end served no purpose.

“I think we will accomplish most of the work required to reduce the deficit by a trillion dollars within [130 days],” he predicted. “Our goal is to reduce the waste and fraud by $4 billion a day, every day, seven days a week. And so far, we are succeeding.”

Billionaire Airbnb co-founder Joe Gebbia, is working to digitize the retirement process for government employees, which is currently stuck using 1950s technology, housed in a Pennsylvania cave.

“It’s an injustice to civil servants who are subjected to these processes that are older than the age of half the people watching the show tonight,” said Gebbia. “We really believe that the government can have an Apple store-like experience, beautifully designed, great user experience, modern systems.”  

“The retirement process is all by paper, literally, with people carrying paper and manila envelopes into this gigantic mine,” added Musk, limiting the number of federal employees who can retire to no more than 8,000 per month.

Gebbia expects to have the antiquated system updated and overhauled in a matter of months.  

“The two improvements that we’re trying to make to Social Security are helping people that legitimately get benefits protect them from fraud that they experience every day on a routine basis and also make the experience better,” said DOGE software engineer Aram Moghaddassi.

He offered an amazing statistic: “When you want to change your (direct deposit) bank account, you can call Social Security. We learned 40% of the phone calls that they get are from fraudsters” who are attempting to commandeer retired seniors’ benefit payments.

“What we’re doing will help their benefits,” assured Musk. “As a result of the work of DOGE, legitimate recipients of social security will receive more money, not less money.” 

“There are over 15 million people that are over the age of 120 that are marked as alive in the Social Security system,” said Steve Davis, who has previously worked alongside Musk at SpaceX, the Boring Company, and X

He explained that despite this being discovered by hardworking personnel at the SSA back in 2008, nothing was done. As a result, 15-20 million social security numbers that were clearly fraudulent were just floating around, susceptible to being used for “bad intentions.”

Health care entrepreneur Brad Smith, who has taken charge of auditing HHS and NIH, also cited stunning, troubling statistics displaying the extreme inefficiencies of the nation’s top federal health organizations.

Smith said that at NIH, “Today they have 27 different centers” created by Congress over the years and there are “700 different IT systems,” each using their own IT software.

“They have 27 different CIOs (Chief Information Officers),” added Smith, “so when you think about making great medical discoveries, you have to connect the data.”  

Those discoveries are likely severely hampered by NIH’s communications disconnect.

Anthony Armstrong, a Morgan Stanley banker now working for DOGE at the Office of Personnel Management (OPM) talked about “duplicative functions” and “overstaffing” at government agencies. He said that money is “sloshing out the door.”

As an example, he cited the IRS, which has 1,400 employees whose only job is to provision laptops and cell phones to IRS workers.  

“As an ex-CFO of a big public tech company, really what we’re doing is, we’re applying public company standards to the federal government, and it is alarming how the financial operations and financial management is set up today,” said Tom Krause, CEO of Cloud Software Group.  

He explained that there is virtually no accountability or verification protections when it comes to the Treasury Department disbursing funds to various government agencies.

A 94-year-old grandmother is no longer “going to be robbed by forces like she’s getting robbed today, and the solvency of the federal government will ensure that she continues to receive those social security checks,” added Musk.

“The reason we’re doing this is because if we don’t do it, America is going to go insolvent and go bankrupt, and nobody’s going to get anything,” said Musk.

Tyler Hassen, a former oil executive working at the Interior Department for DOGE ​​alleged that there was no departmental oversight at the Interior Department “whatsoever” under the Biden administration.  

Steve Davis talked about the out-of-control issuance and use of federal credit cards. 

“There are in the federal government around 4.6 million credit cards for around 2.3 to 2.4 million employees. This doesn’t make sense. So, one of the things all of the teams have worked on is we’ve worked for the agencies and said, ‘Do you need all of these credit cards? Are they being used? Can you tell us physically where they are?’” recounted Davis.

“Clearly there should not be more credit cards than there are people,” interjected Musk.

Musk later described how the Small Business Administration (SBA) has given out $300 million in loans to people “under the age of 11.” An additional $300 million in loans has been handed out to people “over the age of 120.”

Musk said that these government loans are clearly “fraudulent.”  

“Terrible things are being done,” he exclaimed. “We’re stopping it.” 

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Americans rallying behind Trump’s tariffs

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The Trump administration’s new tariffs are working:

The European Union will delay tariffs on U.S. exports into the trading bloc in response to the imposition of tariffs on European aluminum and steal, a measure announced in February by the White House as a part of an overhaul of the U.S. trade policies.

Instead of taking effect March 12, these tariffs will not apply until “mid-April”, according to a European official interviewed by The Hill.

This is not the first time the EU has responded this way to U.S. tariff measures. It happened already last time Trump was in office. One of the reasons why Brussels is so accommodative is that the European Parliament emphasized negotiations already back in February. Furthermore, as Forbes notes,

The U.S. economy is the largest in the world, and many countries rely on American consumers to buy their goods. By import tariffs, the U.S. can pressure trading partners into more favorable deals and protect domestic industries from unfair competition.

More on unfair competition in a moment. First, it is important to note that Trump did not start this trade skirmish. Please note what IndustryWeek reported back in 2018:

Trump points to U.S. auto exports to Europe, saying they are taxed at a higher rate than European exports to the United States. Here, facts do offer Trump some support: U.S. autos face duties of 10% while European cars are subject to dugies of only 2.5% in the United States.

They also noted some nuances, e.g., that the United States applies a higher tariff on light trucks, presumably to defend the most profitable vehicles rolling out of U.S. based manufacturing plants. Nevertheless, the story that most media outlets do not tell is that Europe has a history of putting tariffs on U.S. exports to a greater extent than tariffs are applied in the opposite direction.

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Facts notwithstanding, this trade war has caught media attention and is reaching ridiculous proportions. According to CNBC,

Auto stocks are digesting President Donald Trump’s annoncement that he would place 25% tariffs on “all cars that are not made in the United Sates,” as well as certain automobile parts. … Shares of the “Detroit Three” all fell.

They also explain that GM took a particularly hard beating, and that Ferrari is going to use the tariffs as a reason to raise prices by ten percent. This sounds dramatic, but keep in mind that stocks fly up and down with impressive amplitude; what was lost yesterday can come back with a bonus tomorrow. As for Ferrari, a ten-percent price hike is basically meaningless since these cars are often sold in highly customized, individual negotiations before they are even produced.

Despite the media hype, these tariffs will not last the year. One reason is the retaliatory nature in President Trump’s tariffs, which—again—has already caught the attention of the Europeans and brought them to the negotiation table. We can debate whether or not his tactics are the best in order to create more fair trade terms between the United States and our trading partners, but there is no question that Trump’s methods have caught the attention of the powers that be (which include Mexico and Canada).

There is another reason why I do not see this tariffs tit-for-tat continuing for much longer. The European economy is in bad shape, especially compared to the U.S. economy. With European corporations already signaling increased direct investment in the U.S. economy, Europe is holding the short end of this stick.

But the bad news for the Europeans does not stop there. They are at an intrinsic disadvantage going into a tariffs-based trade war. The EU has a “tariff” of sorts that we do not have, namely the value-added tax, VAT. Shiphub.co has a succinct summary of how the VAT affects trade:

When importing (into the European Union), VAT should be taken into account. … VAT is calculated based on the customs value (the good’s value and transport costs … ) plus the due duty amount.

The term “duty” here, of course, refers to trade tariffs. This means that when tariffs go up, the VAT surcharge goes up as well. Aside from creating a tax-on-tax problem, this also means that the inflationary effect from U.S. imports is significantly stronger than it is on EU imports to the United States—even when tariffs are equal.

If the U.S. government wanted to, they could include the tax-on-tax effect of the VAT when assessing the effective EU tariffs on imports from the United States. This would quickly expand the tit-for-tat tariff war, with Europe at an escalating disadvantage.

For these reasons, I do not see how this “trade war” will continue beyond the summer, but even that is a pessimistic outlook.

Before I close this tariff topic and declare it a weekend, let me also mention that the use of tariffs in trade war is neither a new nor an unusual tactic. Check out this little brochure from the Directorate-General for Trade under the European Commission’:

Trade defence instruments, such as anti-dumping or anti-subsidy duties, are ways of protecting European production against international trade distortions.

What they refer to as “defence instruments” are primarily tariffs on imports. In a separate report the Directorate lists no fewer than 63 trade-war cases where the EU imposes tariffs to punish a country for unfair trade tactics.

Trade what, and what countries, you wonder? Sweet corn from Thailand, fused alumina from China, biodiesel from Argentina and Indonesia, malleable tube fittings from China and Thailand, epoxy resins from China, South Korea, Taiwan, and Thailand… and lots and lots of tableware from China.

Like most people, I would prefer a world without taxes and tariffs, and the closer we can get to zero on either of those, the better. But until we get there, we should take a deep breath in the face of the media hype and trust our president on this one.

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