Elon Musk warned that the rising interest on federal debt poses severe risks to the U.S. fiscal outlook, according to a post on X. The billionaire warned on Tuesday that the U.S. is nearing “de facto bankruptcy” as federal debt exceeds $37 trillion. He noted that interest payments now consume 25% of all tax revenue. Musk warned that if current trends continue, all tax revenue could eventually be consumed by national debt payments, leaving no funds for other needs. The quoted post states that of the $5 trillion in total U.S. Government revenue, interest payments now account for $1.2 trillion. In comparison, the government continues to spend $7 trillion annually, resulting in persistent and ever-growing deficits. Economist Peter Schiff said the U.S. is already bankrupt and warned creditors will soon recognize it. He predicted skyrocketing interest rates and runaway inflation as the Fed tries to delay a collapse.
