The U.S. Faces Potential Bankruptcy, Warns Musk
Elon Musk has cautioned that the US is on track to become “de facto bankrupt” if government spending continues at its current pace. Read Full Article at RT.com
TroibNews 
The tech billionaire has predicted that servicing the federal debt will consume tax revenue, leaving no funds available for essential needs.
Elon Musk, CEO of Tesla and SpaceX, has issued a stark warning that the US is heading towards bankruptcy and will face financial ruin if government spending remains unchecked. His remarks followed a post on X, which brought attention to the alarming increase in interest payments on US government debt.
“We now pay nearly $1.2 trillion per year in interest on the debt, about 23% of all taxes, tariffs and fees collected by the US govt goes to paying interest on the debt,” the Wall Street Silver account stated.
In response, Musk cautioned that “if there is not a radical reduction of government expenditures, then, just like an individual who has taken on too much debt, America will become de facto bankrupt.”
He further emphasized that “the interest on the debt is trending to rapidly absorb all tax revenue, leaving nothing for critical needs.”
Earlier assessments by Musk noted that the cost of servicing the immense US federal debt has surpassed the nation's defense budget, which exceeded $840 billion this year. In late July, the US Treasury revealed that the national debt had exceeded $35 trillion, surging by a trillion within a six-month span. The current debt stands at $35.7 trillion, as reported by the US Debt Clock.
This isn't Musk's first warning regarding US debt. He previously indicated that the current pace of government spending placed the nation on a fast track to bankruptcy and fueled inflation. In September, Musk remarked that every trillion dollars added to the debt is a burden that “our kids and grandkids are going to have to pay somehow.” He warned that if the debt continues to expand at its current rate, the US would be stuck in a damaging cycle where “the only thing we’ll be able to pay is interest.”
Ramin Sohrabi for TROIB News
Elon Musk, CEO of Tesla and SpaceX, has issued a stark warning that the US is heading towards bankruptcy and will face financial ruin if government spending remains unchecked. His remarks followed a post on X, which brought attention to the alarming increase in interest payments on US government debt.
“We now pay nearly $1.2 trillion per year in interest on the debt, about 23% of all taxes, tariffs and fees collected by the US govt goes to paying interest on the debt,” the Wall Street Silver account stated.
In response, Musk cautioned that “if there is not a radical reduction of government expenditures, then, just like an individual who has taken on too much debt, America will become de facto bankrupt.”
He further emphasized that “the interest on the debt is trending to rapidly absorb all tax revenue, leaving nothing for critical needs.”
Earlier assessments by Musk noted that the cost of servicing the immense US federal debt has surpassed the nation's defense budget, which exceeded $840 billion this year. In late July, the US Treasury revealed that the national debt had exceeded $35 trillion, surging by a trillion within a six-month span. The current debt stands at $35.7 trillion, as reported by the US Debt Clock.
This isn't Musk's first warning regarding US debt. He previously indicated that the current pace of government spending placed the nation on a fast track to bankruptcy and fueled inflation. In September, Musk remarked that every trillion dollars added to the debt is a burden that “our kids and grandkids are going to have to pay somehow.” He warned that if the debt continues to expand at its current rate, the US would be stuck in a damaging cycle where “the only thing we’ll be able to pay is interest.”
Ramin Sohrabi for TROIB News
