The interest payments on the national debt just exceeded the defense budget, Elon Musk has said

Billionaire Elon Musk cautioned on Monday that the U.S. is rapidly approaching a debt default, with its national debt accelerating past a record $35 trillion just weeks ago.

In a discussion at the All-In Podcast's All-In Summit 2024, Musk was asked about his proposed government efficiency commission, which he has agreed to lead if former President Trump secures a second term in office.

"If Trump wins — and I acknowledge there are varied opinions on whether that should occur — we have a rare chance for significant deregulation and downsizing of government," Musk said. "Besides regulations, America is also heading towards bankruptcy at a startling rate, and it seems like everyone is ignoring the seriousness of the situation."

Musk highlighted that interest payments on the national debt have now exceeded the Defense Department’s budget, surpassing $1 trillion this year.

"We're adding a trillion dollars to our debt, which our children and grandchildren will have to manage somehow," he stated, noting that interest payments are escalating so quickly that eventually "we'll only be able to cover the interest."

"It’s like someone who has accumulated massive credit card debt," Musk explained. "This doesn’t end well, so we need to cut spending."

Musk, who endorsed Trump in July after the former president’s failed assassination attempt, proposed the idea of a government efficiency commission last month during a discussion he had with Trump on X.