Finance: Elon Musk Predicts An Imminent Collapse Of The USA.

The colossal debt of the United States and its potential repercussions on global financial markets are causing increasing concern. Elon Musk, CEO of Tesla and SpaceX, does not hesitate to sound the alarm, predicting an imminent bankruptcy of American finance if nothing changes.

An astronomical debt that threatens the balance of global finance

The US public debt is reaching dizzying heights, endangering not only the country’s finances but also the stability of global markets. According to Congressional Budget Office (CBO) projections, it is expected to approach 106% of GDP by 2030, a level not seen since the end of World War II.

This downward spiral originates from the expansionary budgetary policies pursued in recent years. Trump’s era tax cuts, followed by the massive relief plans of the Biden administration to tackle the Covid-19 crisis, have significantly deepened the deficit.

Today, the situation is such that just the interest payments on the federal debt exceed the total Pentagon budget, as pointed out by Elon Musk.

Elon Musk’s warning and potential consequences

The South African billionaire doesn’t mince his words when it comes to discussing the economic future of the United States. “America is headed for bankruptcy“, he regularly asserts on social media.

His concerns have intensified recently, especially after the announcement of a record $204 billion increase in public debt in a single day.

Musk fears that this situation could trigger rampant inflation and drive the country towards insolvency. His warnings resonate particularly in a context where confidence in the dollar as a global reserve currency may erode.

The rise of the BRICS and their declared intention to free themselves from the greenback in their exchanges adds additional pressure on the American economy.

The situation is all the more worrying as some analysts, such as those from Morgan Stanley, predict a possible recession in the United States. If these dire forecasts come true, the repercussions on global finance could be devastating.

In the face of this gloomy picture, Elon Musk doesn’t just raise the alarm. He proposes solutions, including the creation of a Government Efficiency Commission aimed at reducing unnecessary spending.