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Musk claims America possibly to go bankrupt
(MENAFN) Elon Musk, the CEO of Tesla and SpaceX, has raised alarms about the United States potentially spiraling towards bankruptcy, urging Washington to curb its excessive spending. Musk's comments were made in response to a post on X (formerly Twitter) that highlighted the soaring interest payments on U.S. government debt, which have reached alarming levels.
The Wall Street Silver account noted that the U.S. now spends nearly USD1.2 trillion annually on interest payments. This staggering figure accounts for about 23 percent of all taxes, tariffs, and fees collected by the federal government. Musk responded with a stark warning: "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."
Musk elaborated on the implications of the rising debt, stating that the trend of increasing interest payments is rapidly consuming all tax revenue, leaving little to nothing for essential government functions. This concern echoes his previous remarks in September, where he pointed out that the costs associated with servicing the massive U.S. federal debt have surpassed the current defense budget, which exceeds USD840 billion for this year.
The situation has escalated to the point where the U.S. Treasury announced in late July that the national debt had exceeded USD35 trillion, having increased by a trillion dollars in just six months. The current debt stands at approximately USD35.7 trillion, according to figures from the U.S. Debt Clock.
Musk's warnings about the U.S. debt crisis are not new. Earlier this year, he expressed concerns that the current rate of government spending could lead the country into a fast lane toward bankruptcy, attributing the overspending to rising inflation rates. As the debate over fiscal responsibility continues, Musk's comments serve as a stark reminder of the financial challenges facing the U.S. and the potential consequences of unchecked government expenditure. The urgency for reform and fiscal accountability is becoming increasingly evident as the national debt continues to climb.
The Wall Street Silver account noted that the U.S. now spends nearly USD1.2 trillion annually on interest payments. This staggering figure accounts for about 23 percent of all taxes, tariffs, and fees collected by the federal government. Musk responded with a stark warning: "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."
Musk elaborated on the implications of the rising debt, stating that the trend of increasing interest payments is rapidly consuming all tax revenue, leaving little to nothing for essential government functions. This concern echoes his previous remarks in September, where he pointed out that the costs associated with servicing the massive U.S. federal debt have surpassed the current defense budget, which exceeds USD840 billion for this year.
The situation has escalated to the point where the U.S. Treasury announced in late July that the national debt had exceeded USD35 trillion, having increased by a trillion dollars in just six months. The current debt stands at approximately USD35.7 trillion, according to figures from the U.S. Debt Clock.
Musk's warnings about the U.S. debt crisis are not new. Earlier this year, he expressed concerns that the current rate of government spending could lead the country into a fast lane toward bankruptcy, attributing the overspending to rising inflation rates. As the debate over fiscal responsibility continues, Musk's comments serve as a stark reminder of the financial challenges facing the U.S. and the potential consequences of unchecked government expenditure. The urgency for reform and fiscal accountability is becoming increasingly evident as the national debt continues to climb.
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