So Farewell Then Elon Musk

The BBC has quoted George Ell, “who knew Musk and was director for Western Europe at Tesla” in its article on The Great Man “scaling back” his time spent at the misnamed Department of Government Efficiency (DOGE): “I think Elon is not someone who surrounds himself with a great diversity of opinion to challenge his thinking”. No-one stands up to him.

No-one tells him that he maybe shouldn’t do this or that. No-one tells him that he got something wrong, should not intervene so much in his companies, or that his political stance might just not be as neutral as he thinks. There was no-one to tell him not to perform a Nazi salute - and yes, ADL people, it was a Nazi salute - an act which poisoned his brands, maybe beyond redemption.

In Musk’s mind, his failures are someone else’s fault. Like Combover Crybaby Donald Trump, someone else did it. With Trump it is usually Joe Biden getting the blame, despite him having been out of power for some months. With Musk it is The Left. As if The Left could have caused the more than 30% decline in Tesla’s share price this year. Musk is deluded.

Nonetheless, we heard earlier this week that “Musk wants to leave politics because he’s tired of ‘attacks’ from the left”. He’ll still be blaming The Left if the Tesla share price falls so far that he gets margin calls and has to either stump up some collateral sharpish, or liquidate part of his holding. He’s either deluded or paranoid. Or, most likely, a combination of the two.

But, some out there on the right might argue, Musk’s contribution must be worth seeking out because he’s been so successful. To which I say, as Brigadier General Anthony McAuliffe said in response to demands by the Wehrmacht that he surrender the city of Bastogne during the Battle of the Bulge, Nuts. Musk was ridiculously wealthy, even as a child.

Moreover, he did not stump up the full cost of his best-known investments, those in Tesla and Twitter, X, or whatever he’s calling it this week, and hence his vulnerability to a precipitous fall in share value, which would spark margin calls, a prospect with which those who have studied The Great Crash of 1929 will be familiar. Add to that his inability to listen to dissenting views.

So it should be no surprise to read Seth Abramson’s commentary on Musk’s stewardship of DOGE: “Elon Musk has cut somewhere between 0% and 3% of what he promised - and most of what was cut was not waste or fraud or abuse, but simply expenditures Mr. Musk did not personally favour for partisan reasons”. Remember that the next time Tufton Street speaks.

So his conclusion is equally unsurprising: “DOGE is the biggest program failure in the history of American government”. And what of Tesla? Back to the BBC report: “On Tuesday, Tesla reported a 20% drop in car sales for the first three months of the year, compared with the same period last year, while profits fell more than 70%”. Oh dear! And there is more. Much more.

“The company warned investors that the pain could continue, declining to offer a growth forecast while saying ‘changing political sentiment’ could meaningfully hurt demand … Musk blamed the boycott of Tesla cars on people who would ‘try to attack me and the Doge team’”. Someone else did it. Nothing to do with him giving a Nazi salute. But do go on.

“Dan Coatsworth, investment analyst at AJ Bell, called expectations ‘rock-bottom’ after the company said earlier this month that the number of cars sold in the quarter had fallen 13% to the lowest level in three years … The firm faces fierce competition, Mr Coatsworth said”. He also drew this ominous conclusion: “Tesla's problems are mounting”. Not a good look.

Elon Musk’s empire is heavily dependent on US Government funding - for ventures such as SpaceX - with Tesla mired in a customer backlash to his infamous Nazi salute and tendency to smear genuine American heroes. Many have departed Twitter after he turned it into a sewer of right-wing abuse and a venue for promoting conspiracy theories. He is not a genius.

Remember Denis Thatcher: “Better to remain silent and be thought a fool, than to open one’s mouth and remove all doubt”. All Musk’s own fault.

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Party Like It’s 1929

They thought he really knew what he was doing, that he was not out of his depth. They thought he would back off at the last minute, that he didn’t really mean it. They thought that wise counsel would prevail, talk him out of it. They thought that Donald Trump was intelligent enough not to proceed with his tariff plan. They were wrong: another 1929 moment now stalks the markets.

It's the economy, Mr Stupid President

The key difference between The Great Crash of October 1929 and today is that the latter is a direct consequence of deliberate acts by the US President. Trump is indeed out of his depth. He is a monumentally stupid individual embarked on a personal mission of vindictive retribution against the foreigners who he believes have ripped off the USA over many years.

By imposing sufficient tariffs on the rest of the world, he believes goods will be manufactured in the USA, rather than elsewhere. Like the iPhone, perhaps? Except to manufacture that device Stateside would, by one estimate, raise its cost price to at least $10,000. Yet his supporters talk of American workers screwing screws into iPhones. What screws?

You use an iPhone? Check the casing. Maybe look at a rather larger example: where does US plane maker Boeing source all those parts that get assembled into best selling aircraft like the 737? They don’t all come from the States. Tariffs will mean vastly more expensive planes. Or a change in the supply network taking years and costing more. Or a bit of both.

Yet away he went with his tariff plan, which, whisper it quietly, is still with us. The market reaction was as predictable as it was sudden: massive falls in stock prices, beginning on a Thursday, an ominous day to start, given the 1929 precedent. There would, claimed The Donald, be no turning back; moreover, he told anyone who would listen how well it was going.

Markets continued their fall. Even after the weekend, the falls went on, until the 1929 parallel came again. Then, the bankers had sent Richard Whitney to ostentatiously buy up blocks of shares; the market turned around. Now, a fake social media account claimed the tariffs were to be paused, and sparked a rally before being rumbled. Then came the flagrant and open corruption.

The Whitney comparison is instructive: as Galbraith noted, he was “a hero, his achievement was widely celebrated, and he was made President of the Exchange. Not long thereafter, he was off to Sing Sing for embezzlement”. This time, no-one will be off to jail, despite the corruption. Despite Trump telling his followers to buy stocks, four hours before finally pausing tariffs.

Those buying included, according to reports, rabbit hole occupant Rep. Marjorie Taylor Greene. From the Democrats’ side of the House, Rep. Alexandria Ocasio-Cortez mused “Any member of Congress who purchased stocks in the last 48 hours should probably disclose that now … It’s time to ban insider trading in Congress”. Trump was, meanwhile, celebrating.

There he was in the Oval Office, pointing to two of his guests and telling “He made $2.5 billion today and he made $900 million. That’s not bad”. One observer noted “Speaker Mike Johnson was ALSO caught on camera saying it was a good day to buy stocks. This is text book market manipulation”. There should be an investigation. Will there be one? Don’t bet on it.

And then came the dénouement: as ITV political editor Robert Peston put it, “We just learned that the world’s most powerful person, Donald Trump, has a boss: the bond market”. Not only were tariffs paused, he had to row back on them for smartphones and other electronic devices coming from China. But the Chinese Government is not making any tariff exemptions for the USA.

If anyone had been in any doubt as to Donald Trump’s fitness for public office, the tariff fiasco has exposed his shortcomings. The USA is having its economy trashed by a shambling old fool, an inept and failed businessman, an amateur human being. He took on the real world, and the real world won. The MAGA cult might not believe it, but they are now just an irrelevance.

The EU and China have begun talks to reduce electronic vehicle tariffs. Tesla EU sales were down 45% year on year to January. Art of the deal my arse.

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Trump Tariffs - The Art Of The Stupid

To great fanfare, and applauded by all the wrong people, Combover Crybaby Donald Trump has announced the imposition of tariffs upon imports from most countries outside the USA, although not, for some reason, Russia or North Korea. There had been much talking up of the move beforehand by those out there on the right. But the markets have not been persuaded.

The tone struck as propaganda was disseminated was noted by the BBC’s Faisal Islam: “President Trump cheered on by auto-workers and oil and gas workers in Rose Gardens as he proclaims ‘Liberation Day’, decrying ‘foreign scavengers’ with expected universal and reciprocal tariffs on every country in the world”. Today, 900 of those auto-workers were laid off.

But back to Faisal Islam. “President says tariffs will raise ‘trillions and trillions of dollars to reduce our taxes and national debt’… which rather suggests a somewhat universal character to these ‘reciprocal’ tariff”. It also suggests that Trump is more stupid than had previously been thought. Meanwhile, the “tariff” against which Trump was reciprocating had been figured out.

One Tweeter put it directly. “The supposed ‘tariffs charged to the US’ are just the total trade deficit as a % of US imports by country, with a floor of 10%. Just laughably stupid”. So all those countries he has singled out are not necessarily imposing tariffs. Worse, some of those who might have been expected to side with Trump were horrified by the whole exercise.

Like Dan, Dan The Oratory Man, who denounced the move. “The policies just announced are batshit crazy. They will cause a recession. And, when they do, the people who backed them will blame foreigners or globalists or some such, and double down”. Or blame something Joe Biden did or didn’t do. Or Hillary Clinton’s emails. Or perhaps the Fake News Media will have done it.

As for the UK only being hit for 10%, while the EU gets slapped with twice that percentage, Jim Cornelius had a caution. “The reason why Trump's UK tariff is 10% and not like EU's 20% has absolutely NOTHING to do with Keir Starmer being a brilliant negotiator, or Trump loving an invite from the King. It's because we're not as good at selling stuff to the USA as the EU is”.

So how did the markets react? The BBC brought bad news: at 1520 hours, “After opening down sharply, the main US indexes have continued to edge lower. The Dow Jones is now down 3.6%, the S&P 500 is 3.8% lower while the Nasdaq has dropped 4.8%”. MAGA cultists are, unsurprisingly, trying their best to slag off the markets, as if they don’t matter. Except they do matter.

But they weren’t important enough to tempt any of Reform UK’s MPs, and certainly not self-appointed Oberscheissenführer Nigel “Thirsty” Farage, to turn up to the Commons for a statement on UK-US trade and tariffs. Maybe the great Farage will be able to explain Trump’s reasoning to us all.

Like “the Cook Islands, Vanuatu, and Saint Pierre and Miquelon made it onto [Trump’s] tariff hit list… but [not] Russia". Another Tweeter expanded on that finding: “Neither Russia nor North Korea got even Donald Trump's 10% minimum tariff. But he did tax [two] islands that have only penguins, and another one that contains ONLY a US military base”. Well, well.

And in the wake of the devastating earthquake that hit Myanmar recently, Dara Ó Briain mused “These is something particularly crass and callous about announcing a 44% trade tariff against Myanmar, this week, of all weeks”. Meanwhile, the idea that sanctions mean no US-Russia trade was debunked: the USA imported around $3 billion of Russian goods last year.

This move is down to Trump, and Trump alone. He has not sought the approval of Congress. He will blame others when it fails, as it will with the certainty of night following day. He should not be allowed to get away with any move to deflect or deny: he had ample opportunity to take advice from those who understand these things. He chose not to. His actions are about to screw over the lives of many who were foolish enough to vote for him.

Sadly, many of the rest may also be casualties. Donald Trump is not a serious politician. As Cloughie might have put it, “he’s a clown, young man”.

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