Tesla’s billionaire CEO, Elon Musk, has once again raised concerns about the U.S. economy, warning that excessive government spending is pushing the country toward "bankruptcy." This alarming statement follows Musk’s recent actions that sent ripples through the crypto market, as Tesla moved $750 million worth of Bitcoin after a two-year dormancy, fueling speculation that the company may be selling off its crypto holdings.
Musk took to his social media platform, X (formerly Twitter), to highlight the increasing U.S. national debt, which grew by $500 billion in just three weeks. Musk’s post, which echoed concerns about reckless government spending, emphasized that such actions are leading the nation toward an economic disaster.
At a recent town hall meeting in Pennsylvania, Musk elaborated on his concerns, explaining that runaway government spending is driving inflation and could send the economy spiraling out of control. "The federal government is spending America into bankruptcy," Musk said, urging for a drastic reduction in spending to avoid a debt crisis that could be impossible to overcome.
Meanwhile, Musk’s controversial comments about creating a "Department of Government Efficiency," humorously referred to as "Doge," have caused a stir in the crypto world. The suggestion, which has been linked to former President Donald Trump, has led to a 25% spike in the price of Dogecoin, a cryptocurrency that Musk has semi-adopted over the years.
In the broader context, the U.S. national debt has surpassed $34 trillion, largely due to pandemic-related stimulus measures. Analysts are now predicting that the debt will continue to soar, potentially reaching $36 trillion by the end of 2024. Some experts believe that this could further fuel a surge in Bitcoin prices, as investors seek alternatives to fiat currencies.
Musk’s warnings come as geopolitical tensions rise and the U.S. election approaches, with many investors preparing for potential economic turbulence. According to JPMorgan analysts, this "debasement trade" could favor both gold and Bitcoin as investors look to hedge against the declining value of traditional currencies.
For more information, read the original article on Forbes.
