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Musk put a spotlight on federal spending, but cut less than he wanted

Musk put a spotlight on federal spending, but cut less than he wanted
At a White House event with Trump on Friday, Musk said his team would stay in place and renewed the goal of reaching at least $1 trillion in cost savings. (Reuters)
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Updated 31 May 2025

Musk put a spotlight on federal spending, but cut less than he wanted

Musk put a spotlight on federal spending, but cut less than he wanted
  • Musk, whose last day spearheading the Department of Government Efficiency is Friday, slashed his goal for savings from $2 trillion to $1 trillion to finally only $150 billion

Elon Musk's effort to dramatically cut government spending is expected to fall far short of his grand early pronouncements, and perhaps even his most modest goals.
It didn't have to be that way.
According to experts across the ideological spectrum, a major problem was a failure to deploy people who understood the inner workings of government to work alongside his team of software engineers and other high-wattage technology talent.
Even that might not have achieved Musk’s original target of $2 trillion, which is roughly the size of the entire federal deficit.
Musk, whose last day spearheading the Department of Government Efficiency is Friday, slashed his goal for savings from $2 trillion to $1 trillion to finally only $150 billion.
The current DOGE results put Musk's efforts well short of President Bill Clinton's initiative to streamline the federal bureaucracy, which saved the equivalent of $240 billion by the time his second term ended. The effort also reduced the federal workforce by more than 400,000 employees.
It also seems clear that Musk was unable to change the overall trajectory of federal spending, despite eliminating thousands of jobs. The Yale Budget Lab, in an analysis of Treasury data, shows money is flowing out of government coffers at an even faster pace than the previous two years.
“It was an impossible goal they were trying to achieve. They kept lowering the standards of success," said Alex Nowrasteh, vice president for economic and social policy studies for the Cato Institute, a libertarian think tank. "A more knowledgeable DOGE team wouldn’t have made insane promises that would be impossible to keep. They set themselves up for failure.”
At a White House event with Trump on Friday, Musk said his team would stay in place and renewed the goal of reaching at least $1 trillion in cost savings.
“This is not the end of DOGE, but really the beginning. The DOGE team will only grow stronger over time. It’s permeating throughout the government,” Musk said in the Oval Office, wearing a black blazer over a T-shirt emblazoned with “The Dogefather.” “We do expect over time to achieve the $1 trillion.” The early evidence suggests that the goal will be exceedingly difficult to reach.
By relying chiefly on information technology experts, Musk ended up stumbling through Washington and sometimes cutting employees vital to President Donald Trump’s own agenda.
Immigration judges were targeted at the same time the administration was trying to accelerate deportations of people in the U.S. illegally. Likewise, technologists with the Bureau of Land Management were purged from the Department of Interior, despite their significance to clearing the way for petroleum exploration, a Trump administration priority.
In many cases, fired employees were rehired, adding administrative costs to an effort aimed at cutting expenditures.
Had Musk’s team been staffed with experts on what positions are required under federal law to continue efforts such as drilling and immigration enforcement, it could have avoided similar mistakes across multiple departments, Nowrasteh said.
“I just think there were a lot of unforced errors that a more knowledgeable DOGE team would have avoided,” Nowrasteh said.
Grover Norquist, president and founder of the conservative Americans for Tax Reform, had a more favorable perspective on Musk's work, saying it should be judged not only by the total dollars saved but his ability to spotlight the issues.
“When you find the problem, you don’t know how far the cancer has spread. You just found a cancer cell,” Norquist said.
Norquist said it’s up to Congress to take the baton and set up a permanent structure to continue where Musk is leaving off.
“I just think it’s going to be seen five to 10 years from now as something very big and very permanent,” Norquist said, “and that was done only because of a guy like Musk, who can come in and shake things up.”
Elaine Kamarck, a key figure in Clinton's government efficiency effort, said its efforts were guided by more modest fiscal targets than DOGE. The initiative was led by Vice President Al Gore, and it was aimed at making the government more responsive to people who used it, and focused heavily on updating antiquated hiring and purchasing procedures.
It took years and carried into Clinton’s second term.
“We went about it methodically, department by department and, yes, used some outside analysts, but they were seasoned government civil servants who knew about government in general,” Kamarck said.
Clinton’s effort saved $136 billion by the end of Clinton’s second term, the equivalent of more than $240 billion today, and contributed to budget surpluses for each of the final four fiscal years he was in office.
Kamarck said she expects what she called Musk's “chaotic” approach will reveal mistakes or oversights that could create crises down the road, such as a transportation problem, response to a natural disaster, or delivery of entitlement benefits.
“These are the things that really hurt presidents, and they are increasing the probability that something is going to happen,” Kamarck said.


Chinese state media says Nvidia H20 chips not safe for China

Updated 10 sec ago

Chinese state media says Nvidia H20 chips not safe for China

Chinese state media says Nvidia H20 chips not safe for China
BEIJING: Nvidia’s H20 chips pose security concerns for China, a social media account affiliated with China’s state media said on Sunday, after Beijing raised concerns over backdoor access in those chips.
The H20 chips are also not technologically advanced or environmentally friendly, the account, Yuyuan Tantian, which is affiliated with state broadcaster CCTV, said in an article published on WeChat.
“When a type of chip is neither environmentally friendly, nor advanced, nor safe, as consumers, we certainly have the option not to buy it,” the article concluded.
Nvidia did not immediately respond to a request for comment. H20 artificial intelligence chips were developed by Nvidia for the Chinese market after the US imposed export restrictions on advanced AI chips in late 2023. The administration of US President Donald Trump banned their sales in April amid escalating trade tensions with China, but reversed the ban in July. China’s cyberspace watchdog said on July 31 that it had summoned Nvidia to a meeting, asking the US chipmaker to explain whether its H20 chips had any backdoor security risks — a hidden method of bypassing normal authentication or security controls.
Nvidia later said its products had no “backdoors” that would allow remote access or control.
In its article, Yuyuan Tantian said Nvidia chips could achieve functions including “remote shutdown” through a hardware “backdoor.”
Yuyuan Tantian’s comment followed criticism against Nvidia by People’s Daily, another Chinese state media outlet. In a commentary earlier this month, People’s Daily said Nvidia must produce “convincing security proofs” to eliminate Chinese users’ worries over security risks in its chips and regain market trust.

Ukraine drone attack kills one, damages industrial facility in Saratov, Russia says

Ukraine drone attack kills one, damages industrial facility in Saratov, Russia says
Updated 23 min 10 sec ago

Ukraine drone attack kills one, damages industrial facility in Saratov, Russia says

Ukraine drone attack kills one, damages industrial facility in Saratov, Russia says
  • Social media footage showed thick black smoke rising over what looked like an industrial zone
  • Rosneft-owned refinery in the Saratov forced to suspend operations earlier this year for safety reasons

One person was killed, and several apartments and an industrial facility were damaged in a Ukrainian drone attack on the south Russian region of Saratov, the governor said on Sunday.

Roman Busargin posted on the Telegram messaging app that residents were evacuated after debris from a destroyed drone damaged three apartments in the overnight attack.

“Several residents required medical assistance,” Busargin said. “Aid was provided onsite, and one person has been hospitalized. Unfortunately, one person has died.”

Russian air defense units destroyed 121 Ukrainian drones overnight, including eight over the Saratov region, the defense ministry said. It reports only how many drones its defense units down, not how many Ukraine launches.

Busargin did not specify what kind of industrial site was damaged.

Social media footage showed thick black smoke rising over what looked like an industrial zone. Reuters verified the location seen in one of the videos as matching file and satellite imagery of the area. Reuters could not verify when the video was filmed.

Ukrainian media, including the RBK-Ukraine media outlet, reported that the oil refinery in the city of Saratov, the administrative center of the region, was on fire after a drone attack.

Reuters could not verify those reports. There was no official comment from Russia.

The Rosneft-owned refinery in the Saratov city was forced to suspend operations earlier this year for safety reasons after Ukrainian drone attacks, industry sources told Reuters.

Russia’s SHOT Telegram channel, which often publishes information from sources in the security services and law enforcement, reported about eight explosions were heard over Saratov and Engels, cities separated by the Volga River.

Russia’s civil aviation authority Rosaviatsia said on Telegram that flights in and out of Saratov had been halted for about two hours early on Sunday to ensure air safety.

Both sides deny targeting civilians in their strikes on each other’s territory in the war that Russia launched with a full-scale invasion of Ukraine in February 2022.

Kyiv says its attacks inside Russia are aimed at destroying infrastructure that is key to Moscow’s war efforts, including energy and military infrastructure, and are in response to Russia’s continued strikes.


Chile copper mine to restart operations after deadly collapse

Chile copper mine to restart operations after deadly collapse
Updated 51 min 38 sec ago

Chile copper mine to restart operations after deadly collapse

Chile copper mine to restart operations after deadly collapse
  • Chile is the world’s largest copper producer, responsible for nearly a quarter of global supply

SANTIAGO: The world’s largest underground copper mine was set to resume operating on Sunday, after a deadly cave-in suspended work for more than a week.
Chile’s Mining Ministry ordered El Teniente to halt activity on August 1 to allow rescuers to search for five miners trapped after a “seismic event” caused the collapse of a tunnel the day before.
All five were found dead.
Whether the cause of the shaking was due to an earthquake or drilling remains under investigation.
State-owned operator Codelco said normal operations would resume on Sunday.
Chile is the world’s largest copper producer, responsible for nearly a quarter of global supply, with about 5.3 million metric tons (5.8 million tons) in 2024.
El Teniente contributed 356,000 metric tons — nearly seven percent — of the country’s total copper.
The metal is critical for wiring, motors and renewable energy technology.
Chile’s mining industry is considered among the safest in the world, with a fatality rate of 0.02 percent in 2024, according to the National Geology and Mining Service of Chile.


After busy first 100 days, Germany’s Merz faces discord at home

After busy first 100 days, Germany’s Merz faces discord at home
Updated 51 min 4 sec ago

After busy first 100 days, Germany’s Merz faces discord at home

After busy first 100 days, Germany’s Merz faces discord at home
  • Having achieved his life’s ambition at age 69 to run Europe’s top economy, Friedrich Merz lost no time to push change
  • Merz’s heavy focus on global events has earned him the moniker of ‘foreign chancellor’ – but trouble looms at home

BERLIN: German Chancellor Friedrich Merz has driven sweeping changes in security, economic and migration policy during his first 100 days in office, but faces widening cracks in his uneasy coalition.

On election night in February, a jubilant Merz promised to bring a bit of “rambo zambo” to the post – using a colloquialism that can evoke a wild and joyous ride, or chaos and mayhem.

Having achieved his life’s ambition at age 69 to run Europe’s top economy, Merz lost no time to push change, mostly in response to transatlantic turbulence sparked by US President Donald Trump.

“Germany is back,” Merz said, vowing to revive the economy, the military and Berlin’s international standing after what he labelled three lackluster years under his center-left predecessor Olaf Scholz.

Even before taking office, Merz’s Christian Democrats (CDU/CSU) and their governing partners from Scholz’s Social Democratic party (SPD) loosened debt rules and unlocked hundreds of billions of euros for Germany’s armed forces and its crumbling infrastructure.

Merz vowed to build “Europe’s largest conventional army” in the face of a hostile Russia and keep up strong support for Ukraine in lockstep with Paris and London.

A promise to ramp up NATO spending endeared Merz to Trump, who greeted him warmly at a White House meeting in June, only weeks after a jarring Oval Office showdown with Ukrainian President Volodymyr Zelensky.

When Israel bombed Iranian targets, Merz, with a penchant for strong and often controversial one-liners, praised it for doing the “dirty work” – but last Friday he took the bold step of freezing arms exports to Israel over its Gaza campaign.

On the home front, Merz has pressed a crackdown on irregular migration, a sharp departure from the centrist course of his long-time party rival Angela Merkel.

He has said he must address voter concerns about immigration to stem the rise of the far-right Alternative for Germany (AfD) party, which won a record 20 percent in February’s election.

Merz’s heavy focus on global events has earned him the moniker of “foreign chancellor” – but trouble looms at home, where his SPD allies have often felt overshadowed or sidelined.

To many of them, Merz’s right-wing positions have been hard to swallow in the marriage of convenience they entered following the SPD’s dismal election outcome of 16 percent.

German voters have not yet fallen in love with Merz either. His personal approval rating slipped 10 points to just 32 percent in the latest poll by public broadcaster ARD.

In an early sign of trouble, Merz’s inauguration on May 6 turned into a white-knuckle ride when rebel MPs opposed him in the first round of the secret ballot.

He was confirmed in the second round, but the debacle pointed to simmering resentment in the left-right coalition.

Many have chafed at his hard line on immigration, his vow to slash social welfare and his limited enthusiasm for climate protection.

Merz also sparked controversy when he dismissed plans to hoist an LGBTQ rainbow flag on the parliament building by saying the Reichstag was “not a circus tent.”

The biggest coalition crisis came last month, sparked by what should have been routine parliamentary business – the nomination of three new judges to Germany’s highest court.

Right-wing online media had strongly campaigned against one of them, SPD nominee Frauke Brosius-Gersdorf, calling her a left-wing activist on abortion and other issues.

The CDU/CSU withdrew support for her and postponed the vote, sparking SPD fury. The issue looked set to fester until Brosius-Gersdorf withdrew her candidature on Thursday.

Other trouble came when the CDU’s Bavarian sister party demanded sharp cuts to social benefits for Ukrainian refugees, a position the SPD opposes.

Vice Chancellor Lars Klingbeil of the SPD warned the conservatives to refrain from further provocations, telling Welt TV that “we already have far too many arguments in this government.”

Both coalition partners know that open squabbling will turn off voters after discord brought down Scholz’s three-party coalition, and play into the hands of the AfD, their common foe.

For now Merz and most other politicians are on summer holidays, leaving unresolved issues lingering.

Merz will need to pay attention, said Wolfgang Schroeder of Kassel University.

“The chancellor’s attitude is: I think big-picture and long term, I’m not interested in the small print,” he said.

But Schroeder added that all the coalition’s big troubles so far – from the judge row to Ukrainians refugees – “have been about the small print.”


Russia and Ukraine hold fast to their demands ahead of a planned Putin-Trump summit

Russia and Ukraine hold fast to their demands ahead of a planned Putin-Trump summit
Updated 10 August 2025

Russia and Ukraine hold fast to their demands ahead of a planned Putin-Trump summit

Russia and Ukraine hold fast to their demands ahead of a planned Putin-Trump summit
  • The maximalist demands reflect Putin’s determination to reach the goals he set when he launched the full-scale invasion of Ukraine on Feb. 24, 2022

The threats, pressure and ultimatums have come and gone, but Russian President Vladimir Putin has maintained Moscow’s uncompromising demands in the war in Ukraine, raising fears he could use a planned summit with US President Donald Trump in Alaska to coerce Kyiv into accepting an unfavorable deal.
The maximalist demands reflect Putin’s determination to reach the goals he set when he launched the full-scale invasion of Ukraine on Feb. 24, 2022.
Putin sees a possible meeting with Trump as a chance to negotiate a broad deal that would not only cement Russia’s territorial gains but also keep Ukraine from joining NATO and hosting any Western troops, allowing Moscow to gradually pull the country back into its orbit.
The Kremlin leader believes time is on his side as the exhausted and outgunned Ukrainian forces are struggling to stem Russian advances in many sectors of the over 1,000-kilometer (over 600-mile) front line while swarms of Russian missiles and drones batter Ukrainian cities.
Ukrainian President Volodymyr Zelensky also has stood firm in his positions, agreeing to a ceasefire proposed by Trump while reaffirming the country’s refusal to abandon seeking NATO membership and rejecting acknowledgment of Russia’s annexation of any of its regions.
A look at Russian and Ukrainian visions of a peace deal and how a Putin-Trump summit could evolve:
Russia’s position
In a memorandum presented at talks in Istanbul in June, Russia offered Ukraine two options for establishing a 30-day ceasefire. One demanded Ukraine withdraw its forces from Donetsk, Luhansk, Zaporizhzhia and Kherson — the four regions Moscow illegally annexed in September 2022 but never fully captured.
As an alternate condition for a ceasefire, Russia made a “package proposal” for Ukraine to halt mobilization efforts, freeze Western arms deliveries and ban any third-country forces on its soil. Moscow also suggested Ukraine end martial law and hold elections, after which the countries could sign a comprehensive peace treaty.
Once there’s a truce, Moscow wants a deal to include the “international legal recognition” of its annexations of Ukraine’s Crimean Peninsula in 2014 and the four regions in 2022.
Russia says a peace treaty should have Ukraine declare its neutral status between Russia and the West, abandon its bid to join NATO, limit the size of its armed forces and recognize Russian as an official language on par with Ukrainian -– conditions reflecting Putin’s earliest goals.
It also demands Ukraine ban the “glorification and propaganda of Nazism and neo-Nazism” and dissolve nationalist groups. Since the war began, Putin has falsely alleged that neo-Nazi groups were shaping Ukrainian politics under Zelensky, who is Jewish. They were fiercely dismissed by Kyiv and its Western allies.
In Russia’s view, a comprehensive peace treaty should see both countries lift all sanctions and restrictions, abandon any claims to compensation for wartime damage, resume trade and communications, and reestablish diplomatic ties.
Asked Thursday whether Moscow has signaled any willingness to compromise to make a meeting with Trump possible, Putin’s foreign affairs adviser Yuri Ushakov responded that there haven’t been any shifts in the Russian position.
Ukraine’s position
The memorandum that Ukraine presented to Moscow in Istanbul emphasized the need for a full and unconditional 30-day ceasefire to set stage for peace negotiations.
It reaffirmed Ukraine’s consistent rejection of Russian demands for neutral status as an attack on its sovereignty, declaring it is free to choose its alliances and adding that its NATO membership will depend on consensus with the alliance.
It emphasized Kyiv’s rejection of any restrictions on the size and other parameters of its armed forces, as well as curbs on the presence of foreign troops on its soil.
Ukraine’s memorandum also opposed recognizing any Russian territorial gains, while describing the current line of contact as a starting point in negotiations.
The document noted the need for international security guarantees to ensure the implementation of peace agreements and prevent further aggression.
Kyiv’s peace proposal also demanded the return of all deported and illegally displaced children and a total prisoner exchange.
It held the door open to gradual lifting of some of the sanctions against Russia if it abides by the agreement.
Trump’s positions
Trump has often spoken admiringly of Putin and even echoed his talking points on the war. He had a harsh confrontation with Zelensky in the Oval Office on Feb. 28, but later warmed his tone. As Putin resisted a ceasefire and continued his aerial bombardments, Trump showed exasperation with the Kremlin leader, threatening Moscow with new sanctions.
Although Trump expressed disappointment with Putin, his agreement to meet him without Zelensky at the table raised worries in Ukraine and its European allies, who fear it could allow the Russian to get Trump on his side and strong-arm Ukraine into concessions.
Trump said without giving details that “there’ll be some swapping of territories, to the betterment of both” Russia and Ukraine as part of any peace deal that he will discuss with Putin when they meet Friday.
Putin repeatedly warned Ukraine will face tougher conditions for peace if it doesn’t accept Moscow’s demands as Russian troops forge into other regions to build what he described as a “buffer zone.” Some observers suggested Russia could trade those recent gains for the territories of the four annexed by Moscow still under Ukrainian control.
“That is potentially a situation that gives Putin a tremendous amount of leeway as long as he can use that leverage to force the Ukrainians into a deal that they may not like and to sideline the Europeans effectively,” Sam Greene of King’s College London said. “The question is, will Trump sign up to that and will he actually have the leverage to force the Ukrainians and the Europeans to accept it?”
Putin could accept a temporary truce to win Trump’s sympathy as he seeks to achieve broader goals, Greene said.
“He could accept a ceasefire so long as it’s one that leaves him in control, in which there’s no real deterrence against renewed aggression somewhere down the line,” he said. “He understands that his only route to getting there runs via Trump.”
In a possible indication he thinks a ceasefire or peace deal could be close, Putin called the leaders of China, India, South Africa and several ex-Soviet nations in an apparent effort to inform these allies about prospective agreements.
Tatiana Stanovaya of the Carnegie Russia and Eurasia Center argued Putin wouldn’t budge on his goals.
“However these conditions are worded, they amount to the same demand: Ukraine stops resisting, the West halts arms supplies, and Kyiv accepts Russia’s terms, which effectively amount to a de facto capitulation,” she posted on X. “The Russian side can frame this in a dozen different ways, creating the impression that Moscow is open to concessions and serious negotiation. It has been doing so for some time, but the core position remains unchanged: Russia wants Kyiv to surrender.”
She predicted Putin might agree to meet Zelensky but noted the Kremlin leader would only accept such a meeting “if there is a prearranged agenda and predetermined outcomes, which remains difficult to imagine.”
“The likely scenario is that this peace effort will fail once again,” she said. “This would be a negative outcome for Ukraine, but it would not deliver Ukraine to Putin on a plate either, at least not in the way he wants it. The conflict, alternating between open warfare and periods of simmering tension, appears likely to persist for the foreseeable future.”