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

Benzinga_recent_news02-08 00:46

On Friday Tesla (NASDAQ:TSLA) CEO Elon Musk issued a stark warning regarding the U.S. national debt, stating that America is on a path to bankruptcy. Musk emphasized the necessity of advancements in ...

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Musk emphasized the necessity of advancements in artificial intelligence and robotics to avert this financial crisis.\nIn a recent podcast appearance, Musk declared, \"We are 1,000% going to go bankrupt as a country and fail as a country, without AI and robots. The national debt is piling up like crazy.\" He underscored that without these technological breakthroughs, the national debt issue is insurmountable.\nThe U.S. national debt currently stands at $38.56 trillion, with federal spending surpassing revenue significantly. In the fiscal year 2026 alone, the government has spent approximately $602 billion more than it has collected. Musk highlighted the growing burden of servicing this debt, noting, \"The interest payments on national debt exceed the military budget, which is a trillion dollars.\"\nThis financial strain is projected to worsen, with a report from the Committee for a Responsible Federal Budget predicting interest payments on the national debt will exceed $1.5 trillion by 2032 and reach $1.8 trillion by 2035.\nMusk’s warnings extend to the potential devaluation of the dollar, a concern he has voiced previously. According to the Federal Reserve Bank of Minneapolis, the purchasing power of $100 in 2025 is equivalent to just $12.06 in 1970, illustrating significant erosion over time.\nThe implications of a devalued dollar and escalating debt servicing costs could have profound impacts on the U.S. economy, necessitating urgent attention and innovative solutions.\nDespite the grim outlook, Musk’s comments suggest that investors can still find opportunities to safeguard their wealth. Historically, savvy investors have navigated fiscal challenges by adapting their strategies to protect against currency devaluation and economic instability.\nThe call for AI and robotics as a solution underscores the potential these technologies hold for boosting productivity and mitigating the fiscal challenges facing the nation.\nTo add Benzinga News as your preferred source on Google, click here.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":1,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"tenantId":"TBGLOBAL","deviceId":"web-server-community-laohu8-v3","version":"4.36.2","shortVersion":"4.36.2","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2609235765","isCrawlerRequest":true}