The US national debt is spiraling out of control and Tesla CEO Elon Musk is not shy about sounding the alarm.
At the All-In Summit, organized by the ‘All-In Podcast’, Musk made no bones about it. “America is going bankrupt extremely quickly,” he warned, “and everyone seems to be whistling past the graveyard at this point.” It is not the first time that Musk has expressed his concerns.
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Last July, he highlighted a headline that screamed, “Interest payments on the U.S. national debt will shatter $1,140,000,000,000 this year – eating up 76% of all income taxes collected.”
Musk added his usual blunt comment: “America is going bankrupt, by the way.”
His warnings are backed by cold, hard facts. The US national debt is now a whopping $35.3 trillion and rising rapidly. The root of the problem is a growing shortage that shows no signs of slowing.
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In the 2024 budget year, the government spent a whopping $1.9 trillion more than it collected. Musk pointed out that annual interest payments on the debt have surpassed the $1 trillion mark, and he didn’t mince words when he said, “We’re adding a trillion dollars to our debt, which our children and grandchildren will one day or another will have to pay another way. .”
If debt continues to grow at this rate, Musk warns that the country will enter a vicious circle where “the only thing we can pay is interest.”
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The real fear, Musk says, is that at some point “the only thing we can pay is interest.” But can a country like the US go bankrupt? It’s complicated. Governments cannot file for bankruptcy the way companies do. Technically, they can keep borrowing as long as there are buyers for their bonds.
However, the real risk lies in inflation and economic instability. If the government prints more money to cover its debts, the value of the dollar could plummet, leaving Americans on the short end of the stick.
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As the co-hosts of the ‘Words & Numbers’ podcast put it, “Technically the government can’t go bankrupt, but it can print enough money to make dollars virtually worthless.”
The economic consequences are clear.
According to the Peter G. Peterson Foundation, rising debt is crowding out public sector investment and economic growth. Confidence in the government’s ability to repay its debts is declining and private investment is taking a hit.
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Former President Donald Trump has also noticed the problem. And in typical Trump fashion, he has a bold solution: bring in Elon Musk. At a rally in Walker, Michigan, Trump told his supporters, “I’m going to get Elon, and he’s going to be our cost savior. I think he can save trillions.”
While Trump admits that Musk likely won’t be able to commit full-time due to his many ventures — rockets, electric cars, brain interfaces — he is confident that Musk’s efficiency can be a game-changer. And with a net worth of $270 billion, Trump assured the crowd: “He’s going to do it for zero. He doesn’t want anything.”
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Musk also seems open to the idea. In a post on X (formerly Twitter), Musk said he would serve without pay, title or recognition if the opportunity arose.
The billionaire compared the US budget situation to someone with too much credit card debt. He warned that the consequences could be serious if the country does not rein in its spending. Musk supports Trump’s bid for the presidency and sees a potential “once in a lifetime” opportunity to reduce the size of government and eliminate waste.
With Musk’s history of cost-cutting — such as cutting Twitter’s workforce by 80% after acquiring the company — Trump is betting that this “cost-cutting” approach could overhaul the government. He told his supporters that Musk’s potential role would not harm anyone but would focus on “waste, fraud and abuse.”
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This article Elon Musk Warns America Is Heading To Bankruptcy – Trump Calls Him ‘Cost-Cutting’ With Zero Salary To Fix The Problem originally appeared on Benzinga.com
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