Ones and Tooze How Scary Is DOGE?
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Feb 14, 2025 Elon Musk's team gaining access to a sensitive U.S. Treasury payment system raises alarm in financial circles. Experts discuss potential risks and implications for the economy. In a flavorful shift, record-high coffee prices take center stage, tracing its journey from Ethiopian roots to a global commodity. The podcast delves into coffee's historical role in political discourse, highlighting its influence on events like the American Revolution, and critiques the current challenges faced by coffee producers against corporate giants.
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Treasury Payment System
- The U.S. Treasury's payment system handles $5.5 trillion annually via 1.4 billion payments.
- This system, run by the Bureau of the Fiscal Service, processes payments for various recipients, including Social Security and bondholders.
Technical vs. Political
- The Treasury's payment system is technical, not political, primarily checking payments against "do not pay" lists.
- Elon Musk's team misunderstands this, believing they can control who gets paid by accessing the system.
System Fragility
- The Treasury payment system, written in COBOL, is complex, fragile, and potentially vulnerable.
- Its age and structure make it difficult to modify safely, and disruptions could have catastrophic consequences.