‘Terrifying’: Elon Musk warns US is heading for ‘bankruptcy’

The world’s richest man and SpaceX CEO has issued a grim forecast for America’s economy.

Elon Musk has issued a grim forecast for the US, warning the nation is quickly heading for bankruptcy thanks to its “terrifying” level of debt.

The warning comes weeks after the world’s richest man and SpaceX CEO was apportioned the co-lead of the newly-founded Department of Government Efficiency (DOGE) by President-elect Donald Trump.

Musk, who became a key ally to Trump during his campaign, will spearhead DOGE – which is not an official department and has no statutory authority - alongside businessman Vivek Ramaswamy, in an attempt to cut billions of dollars in federal spending and slash excess regulations.

Wasting no time, Musk took to X last week to caution: “America is currently headed for bankruptcy super fast”.

Musk warned the US was “currently headed for bankruptcy super fast”. Picture: Alex Wong/Getty/AFP

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The tech billionaire was responding to a separate social media post by DOGE which stressed high government spending must end.

“In FY2023, the U.S. Government spent $6.16. trillion while only bringing in $4.47 trillion,” the post read.

“The last budget surplus was in 2001. This trend must be reversed, and we must balance the budget.”

In 2023, the US spent $6.16. trillion and brought in $4.47 trillion. Picture: X/DOGE

Days later, Musk again expressed concern when he responded to a post on X warning the national debt has amassed over $36 trillion.

“This amounts to over $106k per person in America,” a post by The Rabbit Hole on X read.

“Terrifying tbh,” Musk responded.

The US currently has the largest national debt in the world, growing from $12.27 trillion to $36.11 trillion in the last 20 years.

From 2019 to 2021, spending jumped by about 50 per cent, largely due to the COVID-19 pandemic, according to FiscalData.

“Tax cuts, stimulus programs, increased government spending, and decreased tax revenue caused by widespread unemployment generally account for sharp rises in the national debt,” it notes.

Musk vows to slash spending

Speaking of his plans the department, Muck wrote in a Wall Street Journal op-ed that DOGE would work to slash federal regulations and make major administrative changes.

“We are entrepreneurs, not politicians. We will serve as outside volunteers, not federal officials or employees,” Musk wrote, in an article co-authored by Ramaswamy.

“We are assisting the Trump transition team to identify and hire a lean team of small-government crusaders, including some of the sharpest technical and legal minds in America.”

“The two of us will advise DOGE at every step to pursue three major kinds of reform: regulatory rescissions, administrative reductions and cost savings.”

Musk earlier suggested would be possible to cut “at least $2 trillion” from government spending by ellimating waste, at a campaign rally at Madison Square Garden this month.

“Yes, 2 trillion. At the end of the day, all government spending is taxation,” he said. “Whether it’s direct taxation, all government spending, it either becomes inflation or it’s direct taxation. Your money is being wasted, and the Department of Government Efficiency is going to fix that.”

Trump announced Musk will lead the new US government efficiency group earlier this month. Picture: Brandon Bell/Getty/AFP

A new House subcommittee working in tandem with the panel will be led by far right lawmaker Marjorie Taylor-Greene.

“We’ll be looking at everything from government-funded media programs like (National Public Radio) that spread nothing but Democrat propaganda,” she told Fox News on Sunday.

“We’ll be going into grant programs that fund things like sex apps in Malaysia, toilets in Africa, all kinds of programs that don’t help the American people.”

Elon Musk listens as US President-elect Donald Trump speaks during a meeting with House Republicans. Picture: Allison Robbert/AFP

Musk to hold talks with Republicans

Musk will meet Republican lawmakers next week to begin discussions on sweeping spending cuts.

Mike Johnson, the Republican speaker of the House of Representatives, said in a post on X he was looking forward to hosting Musk next Thursday, along with his co-leader Ramaswamy.

The pair will “discuss major reform ideas to achieve regulatory rescissions, administrative reductions, and cost savings,” Johnson said, praising Trump for making possible a revival of “the principle of limited government.”

While Trump and Musk have claimed that $2 trillion could potentially be saved, most experts believe this is not realistic without cuts to crucial services or benefits.

– With AFP