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Elon Musk rings alarm bells, says the U.S. is going bankrupt, and urges immediate action; else, the dollar’s going to be worth nothing

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The FeedLast Updated: Dec 28, 2024, 12:26:00 AM IST

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Elon Musk has issued a stark warning about America’s financial future, calling attention to the skyrocketing national debt and the risks of a collapsing dollar.

Elon Musk rings alarm bells, says the U.S. is going bankrupt, and urges immediate action; else, the dollar’s going to be worth nothing

Elon Musk, the world’s richest man and CEO of Tesla, has issued a stark warning about America’s financial future. Speaking on The Joe Rogan Experience, Musk expressed serious concerns about the U.S. national debt, which has reached a staggering $36.17 trillion. According to Musk, if drastic measures aren’t taken soon, the dollar’s value could plummet to “nothing,” leaving the country in financial ruin.

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Musk pointed out a troubling reality: interest payments on the debt are consuming an alarming 23% of all government revenue — a figure that’s steadily rising. “If we don't act, the entire government budget will be used just to pay interest,” he explained. This would leave no funds for critical programs like Social Security or Medicare. Musk’s grim assessment paints a picture of a potential economic meltdown if reforms aren’t enacted quickly.

The numbers back up Musk’s concerns. In fiscal year 2024, the federal government spent $1.1265 trillion on interest payments alone, compared to $4.92 trillion in total revenue. With interest costs eating away at the budget, Musk’s warning is a wake-up call for policymakers and citizens alike. Will America act in time to prevent this financial catastrophe?

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Can the U.S. Avoid Bankruptcy?

Although some of the specialists, such as the analysts from J.P. Morgan, argue that the US is not going to default in light of the unusual possibility of issuance of debt in the US currency, Musk does not point to the negative effects of an too rapid "monetization" of the money. This method may avoid a technical default, but it may result in runaway inflation and hence the devaluation of the dollar.

Given these challenges, Musk and financial wisemen propose practical solutions for people to protect their wealth:

Investing in Real Estate: Property values tend to increase with inflation, providing value growth and rental income. Crowdfunding sites and REITs lend themselves even to very small investors.

Buying Strong Stocks: Musk recommends investing in companies that create valuable products, like Tesla and Apple, which have delivered significant returns in recent years.

Gold as a Safe Haven: Gold continues to be an evergreen asset to combat inflation, with prices skyrocketing during times of economic instability.

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FAQs:

What did Elon Musk say about the U.S. economy?
Elon Musk warned that the U.S. is heading toward bankruptcy if immediate action isn't taken. He stated that the dollar could lose its value completely due to the rising national debt and inflation.

Why does Musk think the U.S. is going bankrupt?
He pointed to the $36.17 trillion national debt and said that interest payments alone account for 23% of government income. This leaves little room for funding essential programs like Social Security and Medicare.

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( Originally published on Dec 27, 2024 )

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