Elon Musk has said: America is going bankrupt

Elon Musk expressed concern that the United States could soon face bankruptcy. In a post on his social media platform X (formerly Twitter), he wrote, “Overspending must stop or America will go bankrupt,” in response to a post by user @WallStreetSilv. The user had claimed that eventually, all U.S. taxpayer money will be used to pay interest on the national debt.

The post read, “This is an amazing number to watch in the next few years. Individual income taxes are about half of the government revenue. In February, the U.S. government collected $120 billion from individual income taxes. They had to spend $76 billion in February to pay interest on the national debt. We are not that far off from a day when 100% of individual income taxes are going to be required to pay for interest on the debt."

U.S. billionaire banker Jamie Dimon mentioned that the possibility of a recession in the U.S. is not “off the table.” The Chairman and CEO of JPMorgan Chase stated, “The world is pricing in a soft landing, at probably 70-80%. I think the chance of a soft landing in the next year or two is half that. The worst case would be stagflation.”

Regarding the U.S. Federal Reserve's decision on whether interest rates should be lowered, Dimon remarked that economic indicators have been distorted by Covid-19. He said, “They can always cut quickly and dramatically. Their credibility is a bit at stake here. Unemployment in the United States is very low at the moment, and wages continue to go up.”

Federal Reserve Chair Jerome Powell indicated that the central bank is getting close to lowering interest rates, stating, “We’re waiting to become more confident that inflation is moving sustainably at 2%. When we do get that confidence — and we’re not far from it — it’ll be appropriate to begin to dial back the level of restriction.”