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Is US Debt About to Destroy Economy? Musk Predicts Crisis
Elon Musk warned about the US national debt and warned of a potential financial collapse. As the debt reaches USD 35 trillion, Musk suggests Bitcoin and Dogecoin might be the answer to addressing the crisis.
United States: Tesla’s billionaire Elon Musk, who campaigned for the American president-elect Donald Trump, has been raising the alarm over a coming “financial emergency” lately.
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These worries come over the whopping USD 35 trillion debt as the value of bitcoin has risen – far outstripped by the price of its meme-based bitcoin rival, dogecoin, which has skyrocketed thanks to Musk’s endorsement of the Department Of Government Efficiency, nicknamed Doge, Forbes reported.
Now, as questions emerge as to whether Trump could use bitcoin to erase ”wipe out” US debt, Musk has described US debt expansion as ”unsustainable.”
Musk posted on his social media handle X, “Excess government spending is driving America into bankruptcy,” and “This debt growth is unsustainable.”
Musk said so in reply to bitcoin-backing Kentucky senator Rand Paul, who stated that the “status quo of USD 2 trillion annual deficits is unsustainable.”
Unsustainable US Debt
Paul attracted attention in the 2015 campaign when he collected bitcoin campaign donations for his Republican candidacy for the White House with Trump and many other hopefuls in the 2024 race, and in an interview in 2021, he said he saw crypto as capable of supplanting the dollar because he no longer had confidence in the currency and saw more government surveillance of it.
During the past years, the national debt of the United States has grown tremendously, reaching slightly over USD 34 trillion at the start of 2024, mainly caused by the Covid and lockdown stimulus that raised inflation tremendously and forced the Federal Reserve to increase the interest rates at an unbelievable record high, Forbes reported.
What are they going to do? Trump gave a suggestion in February to a little bitcoin and eliminated USD 35 trillion in debt.
In July, Trump said the White House would establish a strategic national bitcoin reserve and said bitcoin might challenge gold with a USD 16 trillion market cap during an address at the Bitcoin 2024 conference.