US Treasury Secretary Scott Bessent did the mainstream media press tour this weekend, clarifying two critical bullshit talking points to the propagandists: first, DOGE is doing a good job; and second, the US economy faces some significant headwinds as a hangover from ‘Bidenomics’ spendfest.
Speaking in a Feb. 28 interview on Bloomberg Podcasts, Bessent was asked whether DOGE’s cost-cutting measures would have a “material” impact on deficit reduction.
“I think we can make a pretty big hit here,” he replied, explaining that if DOGE identifies $300 billion in savings – which he suggested is possible – it could reduce the annual deficit by approximately 1 percentage point as a share of gross domestic product (GDP).
Even if the savings total only $150 billion, he said, this is still “moving us back toward the target, and we’re determined to get this down.”
As The Epoch Times’ Tom Ozimek reports, Bessent emphasized that DOGE, which was tasked by President Donald Trump with rooting out waste, fraud, and abuse in federal spending, has already uncovered substantial inefficiencies—and a surprising amount of outright fraud.
When in comes to “waste, fraud, and abuse, I think most of us think in terms of waste and abuse,” Bessent said.
“I’ve got to tell you that I’m slightly shocked at some of the fraud we’re finding, and you’re going to be hearing about more of that over the next couple of weeks.”
As for the ultimate savings that DOGE will deliver, Bessent said:
“We’ll see.”
DOGE, led by Elon Musk in a special government role, has an 18-month mandate to slash $2 trillion in federal spending before its scheduled dissolution on Independence Day 2026. Musk has acknowledged the ambitious nature of this goal, saying that even cutting half that amount would be a major step toward reducing inefficiency and lowering deficits.
Over the past month, Musk and DOGE staffers have moved aggressively to pursue reforms across federal agencies, reporting $65 billion in savings through canceled grants, asset sales, workforce reductions, and terminated contracts and leases.
Trump recently urged Musk to push even harder to root out waste and fraud. He also signed an executive order directing federal agencies to work with DOGE to eliminate costly or duplicative regulations, further accelerating its deficit-cutting mission.
“We either solve the deficit, or all we’ll be doing is paying debt,” Musk said in a recent interview with Fox News. “It’s not optional. America will go bankrupt if this is not done.”
According to the Congressional Budget Office (CBO), the federal deficit is projected to average $1.9 trillion per year between 2025 and 2034, or approximately 5.4 percent of GDP over that period. If DOGE’s projected $300 billion in savings materializes—a figure Bessent said was not out of the question—it would lower the deficit to $1.6 trillion and reduce the deficit-to-GDP ratio by nearly 1 percentage point, improving fiscal sustainability.
The CBO has warned that persistently high debt could slow economic growth, increase interest payments to foreign creditors, heighten the risk of a fiscal crisis, and limit policymakers’ ability to respond to future downturns. It has stressed that lawmakers must pursue comprehensive fiscal reforms, including spending cuts, revenue increases, or a combination of both, to put the budget on a sustainable long-term path.
Meanwhile, DOGE’s aggressive efforts have drawn criticism from Democrats in Congress, who accuse the agency of overstepping its authority and operating without sufficient oversight or transparency. The agency also faces multiple lawsuits, some challenging its access to federal data and others questioning its constitutional legitimacy.
Despite the legal and political battles, DOGE appears to have significant public support. A recent poll of Epoch Times readers found overwhelming backing for DOGE and the Trump administration’s push to curb waste, fraud, and abuse. At the same time, respondents called for greater visibility into DOGE’s findings, with some demanding greater accountability—including the prosecution of individuals found to have engaged in fraud.
Bessent’s remarks suggest that such accountability may be on the horizon.
The second part of Bessent’s anti-propaganda tour focused on the current ‘growth scare’-driven-by-DOGE-narrative (as we saw Atlanta Fed’s GDPNOW indicator plunge into recession on Friday):
What is lost on most was the reason for this precipitous decline was a surge in imports (relative to exports), which can simply be blamed on US firms front-running Trump’s tariff threats and bringing in goods before costs rise.
The all-too-convenient narrative is, of course, that this is all Trump (and Musk’s) fault.
Bessent explained to ‘Face The Nation’ in his stoic and unflappable manner, that this is all bullshit (our word, not his):
“What I find interesting is, for the past year & a half, & during the campaign, most of the media said, ‘Oh, the economy is great. It’s just a vibecession.’ Now that President Trump’s in office, there’s an ‘economic problem.'”
“It took 4 years to get us here. President Trump’s been in office 5 weeks & I can tell you we’re working everyday…”
SEC. BESSENT: “What I find interesting is, for the past year & a half, & during the campaign, most of the media said, ‘Oh, the economy is great. It’s just a vibecession.’ Now that President Trump’s in office, there’s an ‘economic problem.'”
“It took 4 years to get us here.… pic.twitter.com/ubVwhjSCQA
— Breaking911 (@Breaking911) March 2, 2025
“Vibecession” vs small business optimism…
In fact, as Bessent explains “We’re seeing the hangover from the excess spending in the Biden 4 years. In 6 to 12 months, it becomes Trump’s economy.”
Treasury Secretary Scott Bessent was just questioned if we’re in a recession.
“We’re seeing the hangover from the excess spending in the Biden 4 years. In 6 to 12 months, it becomes Trump’s economy.”
Translation: They want the market crash soon. https://t.co/NfSOVRpQV0 pic.twitter.com/QzryPJT1IO
— Financelot (@FinanceLancelot) February 28, 2025
Just as we forecast would occur in full detail back in July…
Tyler Durden
Mon, 03/03/2025 – 08:10
