Elon Musk Doubles Down On US Bankruptcy Warning,
Bitcoin To The Rescue??
Elon Musk On US Government Spending
Elon Musk, known for his outspoken views on economic and financial matters, took to X to express his concerns about the countryâs fiscal trajectory. He slammed the U.S. budget disclosures that suggested the government plans to add another $16 trillion to the national deficit by 2035. Musk stated, âAt current rates of government spending, America is in the fast lane to bankruptcy. Government overspending is what causes inflation.â
Muskâs remarks underscore the ongoing debate about the sustainability of U.S. fiscal policy and the potential long-term consequences. Despite cooling inflation, evidenced by the latest Personal Consumption Expenditures (PCE) data, Muskâs reignited fears about the stability of the U.S. economy.
Today, the PCE inflation rate remained steady at 2.5%,unchanged from June and slightly below market expectations of 2.6%. The report,did little to quell concerns over the nationâs mounting debt, which recently soared to $35.27 trillion.
Elon Muskâs warning comes at a time when the global financial markets are on edge, with the Federal Reserveâs rate cut decisions hanging in the balance. The PCE index, a key metric used by the Fed to gauge inflationary pressures, showed a modest monthly increase of 0.2% in July, up from 0.1% in June. While these figures suggest that inflation may be under control, the surging national debt continues to cast a shadow over the economy.
Bitcoin As A Savior Amid Soaring National Debt
In the midst of this economic uncertainty, Bitcoin and other cryptocurrencies have emerged as potential safe havens. Following the release of the PCE data, Bitcoin briefly rallied above $59,000. This movement reflected growing optimism among investors that digital assets could provide a hedge against inflation and fiscal instability.
The BTC price soon
possibly due to renewed concerns over the national debt. Nonetheless, the Bitcoin price is expected to hit $70,000 soon as exchange ratio offers a buy signal.