Amid the BRICS petitioning to challenge the West, Elon Musk warned that the US is “going bankrupt extremely quickly,” in a recent interview. The BRICS alliance has sought to put continued pressure on the US Dollar. That has only been magnified by the continued debt crisis that has the entire country in economic turmoil.
The debt concern has been an ongoing one for America. The country has seen its federal debt figure surpass $35 trillion. With the ongoing inflation fight, and interest rate remaining at a 23-year high, the fragile nature of the US economy has many concerns. According to Musk and other experts, things could still get a lot worse.
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Elon Musk Warns of US Bankruptcy as BRICS Bloc Continues Dollar Challenge
The incoming 2024 US presidential election couldn’t be arriving at a more crucial time. There is no shortage of international activity being led against the West. Specifically, the BRICS bloc has firmly embraced de-dollarization on a global scale. All the while promoting the use of their local currencies for trade.
Now, amid debt concerns and BRICS opposition, Tesla CEO Elon Musk has warned that the US is going bankrupt extremely quickly. Speaking at the All-In Podcast’s All-In Summit 2024, Musk discussed his overarching concerns regarding the fate of the US economy.
“If Trump wins—and obviously, I suspect there are people with mixed feelings about whether that should happen—we do have an opportunity to do kind of a once-in-a-lifetime deregulation and reduction in the size of government,” Musk said. “Because the other thing besides the regulations, America is also going bankrupt extremely quickly, and… everyone seems to be sort of whistling past the graveyard on this one.”
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Musk noted that interest payments on the nation’s debt exceeded $1 trillion in 2023. Noting that the deficit is now that “our kids and grandkids are going to have to pay somehow.” Moreover, he noted that it’s only a matter of time until “the only thing we’ll be able to pay is interest.”
“It’s just like the person at scale that this racked up too much credit card debt,” he added. “This does not have a good ending, and so we have to reduce the spending.” Earlier this year, Donald Trump had recruited Musk for this very issue. Noting that the entrepreneur agreed to lead a commission to address government spending issues.
His warning is certainly a valid one. There is no denying the debt issue, and how it looms over the current economy. The nightmare outcome would be the US going into default. Such a development would shatter the US dollar’s value.