The global economic stage is heating up again! Elon Musk, the head of Tesla and SpaceX, has issued a dire warning to his homeland: an earth-shaking financial crash could be on the horizon. Earlier, the billionaire warned that the United States might face bankruptcy if the current monetary policies remain unchanged. But is the situation truly that grim?
According to Musk, "America is currently headed for bankruptcy super fast."
This bold statement was his response to a report from the Department of Government Efficiency (DOGE). Incidentally, the acronym is a playful nod to the meme cryptocurrency Dogecoin (DOGE). Let us not forget that Musk joined the leadership of this newly established department following Donald Trump's election as president.
Recently, DOGE officials revealed that in 2023, US federal spending exceeded tax revenues, draining the Treasury by a jaw-dropping $1.69 trillion. The last time America saw a budget surplus was back in 2001.
The DOGE team, led by Musk and businessman Vivek Ramaswamy, aims to reverse this downward spiral. They are proposing measures to balance the country’s income and expenditures. Many experts predict that under Musk and Ramaswamy's leadership, the department will focus on slashing subsidies—primarily in social welfare and healthcare.
Analysts suggest that when Musk says "bankruptcy," he is referring to a potential default, in which the US government could fail to service its national debt. That debt has already skyrocketed above $36 trillion.
In this precarious situation, Musk seems ready to steer America away from fiscal disaster.