Musk Issues Warning About Potential US Bankruptcy
Elon Musk has cautioned that the US is on the verge of defaulting on its increasing federal debt unless “major and immediate” steps are implemented to reduce spending. Read Full Article at RT.com.
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The tech billionaire is poised to take on a leadership role in a new agency focused on improving budget efficiency.
Elon Musk has sounded the alarm on the potential for US bankruptcy unless there is “major and immediate” action to address government spending amid escalating federal debt. The CEO of SpaceX and owner of X is expected to co-lead the forthcoming Department of Government Efficiency, which is aimed at cutting unnecessary federal expenditures once President-elect Donald Trump takes office. Musk has previously expressed concerns about the risk of US bankruptcy, reiterating his warning in a recent post on X.
“Major and immediate action is needed to prevent America from going bankrupt,” Musk wrote in response to a DOGE post that highlighted unchecked federal spending.
DOGE pointed out that the last thorough review of the federal government was conducted in 1984, when the national debt stood at $1.6 trillion, equating to a debt-to-GDP ratio of about 38%. Today, that ratio has skyrocketed to more than 121%, and the national debt has exceeded $36 trillion. According to Treasury Secretary Janet Yellen, it is forecasted to reach the recently reinstated debt ceiling just one day after Trump’s inauguration.
During Trump's reelection campaign, Musk committed to curbing government waste and streamlining the federal bureaucracy. Initially, he suggested a reduction of about $2 trillion from the nearly $7 trillion federal budget. However, in a more recent interview, Musk moderated his expectations, describing the $2 trillion figure as a “best-case outcome.”
“If you try for $2 trillion, you have a good shot at getting $1 trillion,” Musk shared in a discussion with Stagwell CEO Mark Penn on X. He estimated that cutting federal spending by $1-2 trillion would help align the supply of goods and services with the money supply, potentially alleviating inflationary pressures.
Mark B Thomas contributed to this report for TROIB News
Elon Musk has sounded the alarm on the potential for US bankruptcy unless there is “major and immediate” action to address government spending amid escalating federal debt. The CEO of SpaceX and owner of X is expected to co-lead the forthcoming Department of Government Efficiency, which is aimed at cutting unnecessary federal expenditures once President-elect Donald Trump takes office. Musk has previously expressed concerns about the risk of US bankruptcy, reiterating his warning in a recent post on X.
“Major and immediate action is needed to prevent America from going bankrupt,” Musk wrote in response to a DOGE post that highlighted unchecked federal spending.
DOGE pointed out that the last thorough review of the federal government was conducted in 1984, when the national debt stood at $1.6 trillion, equating to a debt-to-GDP ratio of about 38%. Today, that ratio has skyrocketed to more than 121%, and the national debt has exceeded $36 trillion. According to Treasury Secretary Janet Yellen, it is forecasted to reach the recently reinstated debt ceiling just one day after Trump’s inauguration.
During Trump's reelection campaign, Musk committed to curbing government waste and streamlining the federal bureaucracy. Initially, he suggested a reduction of about $2 trillion from the nearly $7 trillion federal budget. However, in a more recent interview, Musk moderated his expectations, describing the $2 trillion figure as a “best-case outcome.”
“If you try for $2 trillion, you have a good shot at getting $1 trillion,” Musk shared in a discussion with Stagwell CEO Mark Penn on X. He estimated that cutting federal spending by $1-2 trillion would help align the supply of goods and services with the money supply, potentially alleviating inflationary pressures.
Mark B Thomas contributed to this report for TROIB News
