Elon Musk has raised alarm over the U.S. financial situation, stating that the country is heading toward "bankruptcy." His comments came in response to recent data revealing a dramatic $204 billion increase in federal debt in just one day, which pushed the national debt to a record $35.67 trillion at the start of the fiscal year. The U.S. Treasury also recorded a $275 billion deficit in the same period, highlighting growing fiscal challenges.
Musk emphasized that without significant reforms, the U.S. risks severe economic instability. Economists have noted that rising interest payments on debt, now consuming over $1 trillion annually, and unsustainable spending policies are compounding the crisis. Prominent voices in finance, including Musk and others, advocate for addressing these structural issues to avoid long-term consequences, such as economic stagnation or default.
Musk’s warning comes amid broader concerns over the escalating financial pressures on the U.S. economy. Analysts are urging policymakers to focus on fiscal discipline, reduce unnecessary expenditures, and address inefficiencies in public spending to stabilize the nation's financial trajectory.