Musk Warns of Bankruptcy as US Debt Surpasses $36 Trillion

By Staff, Agencies

Elon Musk has issued a stark warning that the US government will face “de facto bankruptcy” unless it addresses its escalating debt crisis.

Musk, alongside billionaire Vivek Ramaswamy, is set to co-chair the newly established Department of Government Efficiency [DOGE] under President-elect Donald Trump.

This department is tasked with cutting federal spending, with a target of reducing annual expenditures by at least $250 billion.

Musk’s remarks came in response to Kalshi, a financial service predicting a 36% chance of achieving the spending cut goal. Musk has previously described the US gross federal debt, which exceeded $36 trillion in November, as “terrifying.”

Last week, Musk used his social media platform to oppose a proposed 1,500-page spending bill in Congress. He urged his 200 million followers to contact their representatives and demand its rejection. While this measure was ultimately blocked, an alternative backed by Trump and Musk also failed to gain traction, nearly leading to a government shutdown.

A short-term, 118-page compromise bill was passed just after the Friday midnight deadline and signed into law by President Joe Biden.

Reacting to the development, House Speaker Mike Johnson said, “President Trump will return to DC and to the White House, and we will have Republican control of the Senate and the House. Things are going to be very different around here. This was a necessary step to bridge the gap.”