Musk publishes US bankruptcy caution
Date
12/30/2024 6:40:34 AM
(MENAFN) Elon Musk has warned that the US government is on the brink of "de facto bankruptcy" unless it addresses its rising debt. His comments came as he is set to co-lead a new department aimed at reducing federal spending under President-elect Donald Trump. Musk’s remarks were prompted by a prediction from Kalshi, a financial service, which noted a 36% chance that federal spending would be cut by at least $250 billion under Trump. This would be managed by the newly proposed Department of Government Efficiency (DOGE), which Musk will co-chair alongside billionaire Vivek Ramaswamy.
Musk has expressed concern about the US's federal debt, which surpassed $36 trillion in November, calling it "terrifying." He also recently used his social media platform to urge American citizens to oppose a proposed stop-gap spending bill in Congress, which ultimately did not pass. Instead, a 118-page short-term solution was approved just before a government shutdown deadline.
Musk's involvement in the debate highlights his commitment to pushing for fiscal reforms. Speaker Mike Johnson, commenting on the situation, said that with President Trump’s return and Republican control of Congress, significant changes are expected.
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