Tesla CEO Elon Musk raises concern over $35 trillion ‘time bomb’

Entrepreneur, investor and one of the richest persons globally, Elon Musk has raised serious concerns over an apparent ‘financial emergency’ in the US. It comes as the federal government’s interest payments surpass $1 trillion annually.

The national debt has reached $35.7 trillion and could touch $36 trillion by year’s end. Speaking at a recent Donald Trump campaign rally, the Tesla CEO highlighted that interest payments currently consume 23% of all federal tax revenue.

The mounting debt crisis has triggered a shift to alternative assets. Bitcoin and gold rates have reached record levels. The cryptocurrency has approached $70,000 as investors increasingly consider it ‘digital gold’ amid rising inflation concerns.

National debt crisis and nearing presidential election

The surge in national debt is primarily from the COVID-era stimulus measures that contributed to inflation, compelling the Federal Reserve to implement historic interest rate hikes. Current projections suggest continued deficit increases.

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The Federal Reserve appears to be caught in a ‘nightmare scenario’ as it needs to balance inflation control and government obligations, all at the same time. Prominent investor Paul Tudor Jones has also raised alarm about a potential ‘debt bomb’.

The serious debt crisis in the US comes against a backdrop of raging debates over a number of national issues as the presidential election nears. Democratic nominee Kamala Harris and Republican nominee Donald Trump are looking to battle it out in November.

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