Donald Trump
The market is the only thing that can upset Donald Trump
Andreas Cervenka
Reporter and economic commentator
This is a commenting text. Analysis and positions are the writer's.
Updated 09.05 | Published 05.54
There is no doubt that the world's richest man made the deal of the century. His fortune has not only increased by over 700 billion kroner since Donald Trump's victory, four hundred and fifty times more than what he invested in getting him elected.
With the purchase also comes the keys to the US state apparatus as well as enormous influence over world politics.
At least that seems to be how Elon Musk himself has interpreted the transaction. After the election, he has increasingly acted as if he and not Donald Trump won.
Among other things, it has been reported that Elon Musk jumped into phone conversations with world leaders, took his own initiative to mediate in the conflict with Iran and had strong views on who should sit in the government.
With a fortune of SEK 3,300 billion and as the owner of one of the world's largest megaphones X, Elon Musk has the resources to effectively stop all internal opposition to Donald Trump within the Republicans.
That money controls politics is certainly nothing new.
The new thing is that the bidding takes place completely openly. On Monday, Tesla's stock price rose further on the news that the Trump administration will be very friendly to self-driving cars, which happen to be Tesla's most important future area.
Another group cheering is the crypto people.
Since election night, bitcoin has risen 33 percent to new records above $90,000.
During the election campaign, Donald Trump came out as a crypto-enthusiast and even floated the idea of paying off part of the US national debt with bitcoin.
How does it happen? Crypto-billionaires and lobbying organizations bet billions in the election.
In return, the crypto kings expect a digital reincarnation of the Wild West. Which should be delivered.
One of the winners is again Elon Musk whose favorite cryptocurrency Dogecoin has risen by 100 percent since the election.
In line with the fact that reality increasingly resembles a satire by Sacha Baron Cohen, Doge is also the abbreviation for the hit-and-run authority Department of Government Efficiency that Elon Musk has been given responsibility for.
The goal is to cut SEK 22,000 billion in costs, or almost a third of the US government budget. (A not very bold guess is that the government contracts for Elon Musk's company Space X will miraculously survive this slaughter).
However, a deep dive into the details shows that dismantling the American welfare state will not be easy - not even for a universal genius like Elon Musk.
That's where the problems begin.
Donald Trump's most important measure of his own success is how the stock market is doing, Fortune magazine stated this week. The stock market also responded to his triumph by trading up sharply in New York, as they have already factored in the money from upcoming tax cuts and deregulation. The market also coldly calculated that Trump's threats of shockingly high tariffs are just threats. If they become a reality, the stock market would fall - completely out of the question!
The bank Barclays wrote to its customers that what the president says "should be taken seriously but not literally".
But a little more sober thoughts have already appeared.
An Elon Musk in a Dark Maga cap dancing around the Treasury Department off-leash could create the kind of turmoil that Wall Street loathes almost as much as paying taxes.
Even the plans to deport millions of immigrants risk quickly backfiring - it could drive up wages, suppress inflation and thus push up interest rates.
Very bad for the stock market.
With control of the White House, majorities in both the Senate and the House of Representatives, and surrounded by an entire army of hand-picked, professional yes-sayers, Donald Trump wields power like few presidents before him.
Against the financial market, it weighs very lightly.
Just ask former UK Prime Minister Liz Truss who a couple of years ago was more or less ousted by the bond market.
If the stock market is Donald Trump's best friend and mentor, he will soon realize that it is much like holding an octopus in his hand. Wow, only the slime is left.
Even Elon Musk risks getting a basic course in who really decides.
The financial market works a bit like a very powerful AI, programmed to generate maximum profit in all situations and with minimal understanding of human phenomena such as morality, prestige or loyalty.
In 2024, then, this invisible but potent force is the last adult in the room.
Someone might wonder - is it so wise to put so much power in the financial market? What happened to that other thing - society?
That's a good question. Which can only be asked by someone who really hasn't been keeping up lately.
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