Immediate 🚨
(Otherwise, the dollar would become worthless.)
Elon Musk, the world’s richest man and CEO of Tesla, has issued a stark warning about America’s financial future. Speaking on the Joe Rogen Experience, Musk expressed serious concerns about the U.S. national debt, which has reached $36.17 trillion.
According to Musk, if drastic measures are not taken soon, the value of the dollar could collapse to “nothing,” leaving the country in financial ruin.
Musk pointed to a disturbing reality: Interest payments on the debt consume 23% of all government revenue — a percentage that is constantly increasing.
“If we don’t act, the entire government budget will be used just to pay interest,” he explained. That will leave no money for vital programs like Social Security or Medicare. Musk’s bleak assessment paints a picture of potential economic collapse if reforms aren’t implemented quickly.
The numbers back up Musk’s concerns. In fiscal year 2024, the federal government spent $1.1265 trillion on interest payments alone, compared with $4.92 trillion in total revenue.
With interest costs eating away at the budget, Musk’s warning is a wake-up call for policymakers and citizens alike. Will America act in time to prevent this financial catastrophe?
🔸Can the United States avoid bankruptcy?
Although some experts, such as analysts from JPMorgan, argue that the US will not default given the extraordinary likelihood of issuing debt in US dollars, Musk does not point to the negative effects of “liquidating” the money too quickly. This method may avoid a technical default, but it could lead to uncontrolled inflation and thus a devaluation of the dollar.
Given these challenges, Musk and financial sages suggest practical solutions for people to protect their wealth:
Investing in Real Estate: Property values tend to increase with inflation, providing value growth and rental income. Crowdfunding sites and REITs are suitable for even very small investors.
Buy strong stocks: Musk recommends investing in companies that produce valuable products, such as Tesla and Apple, which have generated strong returns in recent years.
Gold as a safe haven: Gold remains a perennial anti-inflationary asset, with prices rising during times of economic instability.
What did Elon Musk say about the US economy?
Elon Musk has warned that the United States is heading towards bankruptcy if immediate action is not taken. He said that the dollar could lose its value entirely due to the high national debt and inflation.
🔸Why does Musk think the United States is on the verge of bankruptcy?
He pointed to the $36.17 trillion national debt and said that interest payments alone account for 23 percent of government revenue. That leaves little room to fund essential programs like Social Security and Medicare.