Elon Musk has issued a stark warning about the US market, stating that, Benzinga information, the nation is on the verge of economic collapse.
In a new look on The Joe Rogan Experience, Musk didn’t hold back, saying the government’s growing debts is causing the impending crisis.
” We’re drowning in debt”, Musk said, pointing to the US’s$ 36.14 trillion debt, as reported by the Treasury Department. He warned that interest payments alone now account for 23 % of all national income. The whole state budget will be used for paying interest, if this continues. That means no income for Social Security, no Medicare, everything. America may be pancakes”.
In 2024, the US government spent more than$ 1 trillion on interest payments, which is a significant portion of its$ 4.92 trillion revenue. According to experts, these bills may continue to rise over the upcoming ten years, possibly surpassing those spent on Medicare and defense.
Musk suggested a solution: cutting federal spending by 30 %. However, this has faced pushback from some professionals, including Marc Goldwein from the Committee for a Responsible Federal Budget, who called for cuts “borderline difficult” without greatly impacting programs like Social Security.
When asked about the consequences on regular Americans, Musk said,” It means prices will rise, work will vanish, and methods we rely on may collapse”, he warned.
Janet Yellen, the minister of Treasury, has also raised alarms and urged Congress to prepare quickly to avoid financial ruin, warning that the US may have reached its debt sky as early as January 2025.
