There is growing concern about the colossal debt of the United States and its potential impact on global financial markets. Elon Musk, CEO of Tesla and SpaceX, does not hesitate to sound the alarm, predicting an imminent bankruptcy of American finance if nothing changes.
An astronomical debt that threatens global financial balance
The US public debt is reaching dizzying heights, endangering not only the country's finances, but also the stability of global markets. According to projections from the Congressional Budget Office (CBO), it should approach 106% of GDP by 2030, a level not seen since the end of the Second World War.
This infernal spiral finds its origin in the expansionist budgetary policies carried out in recent years. The Trump-era tax cuts, followed by the Biden administration's massive stimulus plans to deal with the Covid-19 crisis, significantly widened the deficit.
Today, the situation is such that interest payments on the federal debt alone exceed the entire Pentagon budget, as Elon Musk points out.
Elon Musk's warning and the potential consequences
The South African billionaire does not mince his words when it comes to discussing the economic future of the United States. “ America is headed for bankruptcy », he insists regularly on social networks.
His concerns have intensified recently, particularly after the announcement of a record $204 billion increase in public debt in a single day.
Musk fears that this situation will cause rampant inflation and push the country towards insolvency. His warnings resonate particularly in a context where confidence in the dollar as the world's reserve currency could be eroding.
The rise in power of the BRICS and their stated desire to free themselves from the greenback in their trade adds additional pressure on the American economy.
The situation is all the more worrying since some analysts, such as those at Morgan Stanley, are predicting a possible recession in the United States. If these dire predictions come true, the repercussions for global finance could be devastating.
Faced with this dark picture, Elon Musk is not content to sound the alarm. He proposes solutions, including the creation of a Commission on Government Efficiency aimed at reducing unnecessary spending.
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