Today marked a major milestone for the social media platform X after the company’s CEO, Elon Musk, conducted an in-depth interview with the ex-president and current candidate Donald J. Trump on the Spaces platform. The tech and crypto community saw the highly anticipated interview as a way to gain valuable insight into what a potential Trump second term could mean for the market. Here’s what you need to know.
Trump is Back on X
It’s been over a year since Trump took to X (Twitter) to communicate with his millions of followers. This week, he broke that silence after posting a video highlighting his current cases @realDonaldTrump. Trump had been banned following concerns after the Jan 6 attacks. He was reinstated shortly after Musk purchased Twitter but had chosen to refrain from posting until these recent tweets.
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Source – X
Technical Problems
The interview got off to a slow start, which was the result of a massive DDOS attack that left the space interview offline for 40 minutes. Musk posted about the attack on X. He stated that the network was fixing the issue and was considering starting with a smaller crowd and posting the interview afterward. However, the problems were resolved, and the interview began at 8:40 p.m.
Interview Highlights
The interview began with Musk speaking on the attack and how it highlights the desire of some people to censor the event. He explained that the format was set up to provide an open discussion. He noted that in many instances, the interviewers are aggressive, making it nearly impossible to gain real insight into Trump’s demeanor and plans.
Economy
Musk asked Trump about the assassination attempt, crime, migration, and his debate performance before delving into the economy and inflation. Trump explained that inflation was the most important issue for most Americans, even more so than nuclear war. He said that inflation was devouring the middle class, which now finds it hard to purchase groceries.
It is for this reason, among others, that an increasing number of people are drawn toward investing in and utilizing Bitcoin, as it is a finite asset with a fixed emissions schedule.
Trump stated that the middle class was suffering the most, with many people working full-time and unable to pay their bills. He described how many people are living in debt by taking out loans to get through their daily lives due to rising inflation. Musk spoke on inflation as well. He described inflation’s main cause as government overspending. Trump added to the discussion by explaining that he felt inflation was higher than recorded because many items aren’t used to gauge the metrics. Musk replied that as Americans, “Don’t take prosperity for granted”
Sensible Regulations
Sensible regulations were another topic that the two discussed. Musk, the CEO of Tesla, one of the most valuable automakers in the stock market, is no stranger to regulations. He recently moved his firms from California to Texas due to the intense regulation the state added for businesses. Trump went on to express how over-regulation has damaged many industries, including the farming sector.
Musk explained that regulations can add up, and without any way to eliminate old ones, they stifle innovation. He then used the medical field as an example of how stifling innovation via bureaucracy can hurt the average person. Musk also spoke on how important it is to actively reduce rules and regulations to prevent a “clogging of the arteries” scenario where everything is illegal.
Committee to Review Spending
Notably, Musk suggested the formation of a government efficiency committee to help reign in spending and reduce inefficiencies in the current system. He even asked to be part of the committee, to which Trump agreed before going into a discussion on the importance of negotiating for better prices on government contracts.
Specifically, Trump spoke on the Boeing Air Force 1 purchase he made during his first term in office. He recounted how Boeing attempted to charge the government $5.7B for two specially designed planes. Trump described how he declined to sign for a month before the manufacturer called him and reduced the price by $1.6B.
Notably, Boeing recently re-acquired Spirit Aerospace as it looks to get back on track after a tumultuous year in which various whistleblowers exposed some questionable decisions made by the company.
Education Matters
Education was briefly touched on by the two during the discussion. Trump expressed how he would return education to the state with minimal federal oversight. He believes that the maneuver wouldn’t benefit all states, but at least 35 would see potential gains.
Cost of Energy Needs to Go Down
Trump then described the need to bring energy prices down as soon as possible. Rising energy costs have stripped Americans of their savings. Trump spoke on how wind power and alternatives are helpful but incapable of replacing fossil fuels completely. Trump and Musk spoke at length about Trump’s plans to “drill baby drill” as part of his energy strategy.
Trump explained how the US reserves are vital to lowering costs for the average citizen. He then discussed the XL pipeline and Alaska’s massive oil reserves. Trump stated that the reserves could be comparable to Saudi Arabia’s reserves and how opening up these drill sites would boost the economy in multiple ways.
Looking towards the future, it is important to note that while our reliance on fossil fuels will remain for years to come, this will not always remain the case. As it stands, many believe that Nuclear Fusion will finally be the technology that allows humans to do so – a belief that has been bolstered by various breakthroughs over the past few years. Supplanting fossil fuels, however, may still be decades away from commercialization, making a continued commitment to drilling critical for prosperity until that time comes.
AI Energy Needs
Interestingly, Trump touched on AI energy consumption and how it requires faster and more capable machines. He expressed concern that AI energy needs are set to double in the future and that efficient alternatives are needed to support a vibrant AI economy. Thankfully, researchers have already begun creating new chips designed to solve this issue.
COVID-19
Trump also discussed how COVID-19 affected his economic policies. He stated that he had planned to reduce debt sharply by opening up new pipelines and drilling operations across the US. The newly drilled oil would be sold to the EU as part of this approach. However, COVID-19 halted all of these plans, which he plans to reinitiate if elected.
Shifting Positions
Elon Musk has seen a slow shift to the right over the last four years. Musk is among the richest entrepreneurs in the world. He had previously supported Biden in 2020 but has stated that he isn’t political. He went on to call himself, historically, a moderate Democrat. He described this moment in US history as a “critical juncture” and the importance of having a moderate administration in office.
An In-Depth View Into Trump’s View of the Future
The interview shed light on many of Trump’s views, which are often overshadowed by his controversies. The event went smoothly following the delayed start. In the end, Musk succeeded in providing an open discussion that allowed Trump to speak freely about his policies and goals – including expected approaches to important technologies like AI.
Musk closed the interview by endorsing Trump and thanking him for the opportunity.