Published: December 27, 2024 7:29 am
Author: RT
The US must fix its rising national debt problem, the billionaire has said
The US government will “go de facto bankrupt” unless it reins in its rising debt, Elon Musk has warned. The billionaire is set to co-lead a new department tasked with curbing spending under President-elect Donald Trump.
Musk was reacting to a post by Kalshi, a financial service that allows users to bet on future events and which makes a prediction on how likely these events are to happen. It hailed the fact that the market estimated at 36% the chance of annual federal spending being cut by at least $250 billion under Trump. Kalshi flagged the future Department of Government Efficiency (DOGE), which Musk is set to co-chair with fellow billionaire Vivek Ramaswamy, as the entity that would help slash expenditure.
The US gross federal debt surpassed the $36 trillion benchmark in November, a development that Musk called “terrifying” at the time.
Last week, he leveraged his social media influence to weigh in on a debate in the US Congress over a stop-gap spending bill. Musk urged his more than 200 million followers on X who are American citizens to contact their representatives on Capitol Hill and express opposition to a proposed spending bill that he said “should not pass.”
READ MORE: US shuts down its ‘propaganda and censorship’ agency
The 1,500-page measure ultimately didn’t proceed, but neither did an alternative proposed by Trump and backed by Musk, which put the US government on the verge of a new shutdown. A compromise 118-page short-term solution was passed after the Friday midnight deadline and was signed into law by President Joe Biden on Saturday.
“President Trump will return to DC and to the White House, and we will have Republican control of the Senate and the House,” Speaker Mike Johnson commented on the outcome. “Things are going to be very different around here. This was a necessary step to bridge the gap.”
