America’s national debt is spiraling out of control, and Tesla CEO Elon Musk isn’t shy about sounding the alarm.
At the All-In Summit, hosted by the “All-In Podcast,” Musk pulled no punches. “America is going bankrupt extremely quickly,” he warned, “and everyone seems to be whistling past the graveyard on this one.” It’s not the first time Musk has expressed his concerns.
Don’t Miss:
This past July, he highlighted a headline that screamed, “Interest Payments on U.S. National Debt Will Shatter $1,140,000,000,000 This Year – Eating 76% of All Income Taxes Collected.”
Musk added his usual blunt commentary: “America is going bankrupt btw.”
His warnings are backed up by cold, hard facts. The U.S. national debt is now at a staggering $35.3 trillion and climbing fast. The root of the problem is a growing deficit that shows no signs of slowing down.
Trending: I’m 62 Years Old And Have $1.2 Million Saved. Is This Enough to Retire Stress-Free?
In fiscal year 2024, the government spent a jaw-dropping $1.9 trillion more than it collected. Musk pointed out that annual interest payments on the debt have crossed $1 trillion, and he didn’t mince words when he said, “We’re adding a trillion dollars to our debt, which our kids and grandkids are going to have to pay somehow.”
If the debt keeps growing at this pace, Musk warns the country will be trapped in a vicious cycle where “the only thing we’ll be able to pay is interest.”
See Also: How do billionaires pay less in income tax than you? Tax deferring is their number one strategy.
The real fear, Musk says, is that at some point, “the only thing we’ll be able to pay is interest.” But can a country like the U.S. go bankrupt? It’s complicated. Governments can’t file for bankruptcy the way companies do. Technically, they can keep borrowing as long as there are buyers for their bonds.
The real risk, though, lies in inflation and economic instability. If the government prints more money to cover its debts, the dollar’s value could plummet, leaving Americans with the short end of the stick.
Trending: A billion-dollar investment strategy with minimums as low as $10 — you can become part of the next big real estate boom today.
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 nearly worthless.”
The economic consequences are clear.
According to the Peter G. Peterson Foundation, rising debt crowds out investments in the public sector and economic growth. Confidence in the government’s ability to repay its debt diminishes and private investment takes a hit.
Trending: Amid the ongoing EV revolution, previously overlooked low-income communities now harbor a huge investment opportunity at just $500.
Former President Donald Trump has noticed the issue, too. And in typical Trump fashion, he has a bold solution – bring in Elon Musk. At a rally in Walker, Michigan, Trump told supporters, “I’m going to get Elon, and he’s going to be our cost-cutter. I think he can save trillions.”
Though Trump admits Musk probably won’t be able to commit full-time due to his many ventures – rockets, electric cars, brain interfaces – he’s confident Musk’s efficiency could change the game. 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.”
Trending: ‘Scrolling to UBI’: Deloitte’s #1 fastest-growing software company allows users to earn money on their phones – invest today with $1,000 for just $0.25/share
Musk seems open to the idea, too. In a post on X (formerly Twitter), Musk said he would serve without pay, title, or recognition if the opportunity arose.
The billionaire likened the U.S. fiscal situation to someone with too much credit card debt. He warned that the consequences could be severe if the country doesn’t curb its spending. Supporting Trump’s bid for the presidency, Musk sees a potential “once in a lifetime” chance to reduce government size and eliminate waste.
With Musk’s history of cutting costs – such as slashing Twitter’s workforce by 80% after acquiring the company – Trump is betting that this “cost-cutter” approach could reshape the government. He told supporters that Musk’s potential role wouldn’t hurt anyone but would target “waste, fraud and abuse.”
Read Next:
UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets.
Get the latest stock analysis from Benzinga?
This article Elon Musk Warns America Is Spiraling Towards Bankruptcy – Trump Taps Him As ‘Cost Cutter’ With A Salary Of Zero To Fix It originally appeared on Benzinga.com
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
