Elon Musk Warns US Will '1,000%' Go Bankrupt Over Soaring Debt, Says 'Interest Payments On National Debt Exceed Military Budget'

On Friday Tesla (NASDAQ:TSLA) CEO Elon Musk issued a stark informing regarding the U.S. nationalist debt, stating that America is connected a way to bankruptcy. Musk emphasized the necessity of advancements successful artificial quality and robotics to avert this fiscal crisis.

In a caller podcast appearance, Musk declared, "We are 1,000% going to spell bankrupt arsenic a state and neglect arsenic a country, without AI and robots. The nationalist indebtedness is piling up similar crazy." He underscored that without these technological breakthroughs, the nationalist indebtedness contented is insurmountable.

The U.S. nationalist indebtedness presently stands astatine $38.56 trillion, with national spending surpassing gross significantly. In the fiscal twelvemonth 2026 alone, the authorities has spent astir $602 cardinal much than it has collected. Musk highlighted the increasing load of servicing this debt, noting, "The involvement payments connected nationalist indebtedness transcend the subject budget, which is simply a trillion dollars."

This fiscal strain is projected to worsen, with a study from the Committee for a Responsible Federal Budget predicting involvement payments connected the nationalist indebtedness volition transcend $1.5 trillion by 2032 and scope $1.8 trillion by 2035.

Musk’s warnings widen to the imaginable devaluation of the dollar, a interest helium has voiced previously. According to the Federal Reserve Bank of Minneapolis, the purchasing powerfulness of $100 successful 2025 is equivalent to conscionable $12.06 successful 1970, illustrating important erosion implicit time.

The implications of a devalued dollar and escalating indebtedness servicing costs could person profound impacts connected the U.S. economy, necessitating urgent attraction and innovative solutions.

Despite the grim outlook, Musk’s comments suggest that investors tin inactive find opportunities to safeguard their wealth. Historically, savvy investors person navigated fiscal challenges by adapting their strategies to support against currency devaluation and economical instability.

The telephone for AI and robotics arsenic a solution underscores the imaginable these technologies clasp for boosting productivity and mitigating the fiscal challenges facing the nation.

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