Elon Musk believes US could go 'bankrupt' soon because of this reason: ‘Stop it’
Elon Musk wrote, “America will go bankrupt” in response to a post by a user on his social media platform X.
Elon Musk expressed worry that the United States could go bankrupt soon. In a post on his social media platform X (formerly Twitter), Elon Musk wrote, “Overspending must stop or America will go bankrupt” in response to a post by X user @WallStreetSilv who claimed that in sometime 100 percent of US taxpayer's money will be used to pay interest on national debt.
Read more: US recession possible? JPMorgan’s Jamie Dimon says not ‘off the table’. Explains
What post did Elon Musk agree to?
"This is an amazing number to watch in the next few years. Individual income taxes are about 1/2 of the govt revenue. For February, the US govt collected $120 billion from individual income taxes. They had to spend $76 billion in February to pay interest on the national debt. We are not that far off from a day when 100% of individual income taxes are going to be required to pay for interest on the debt," the user said in the post.
Is US recession likely?
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US billionaire banker Jamie Dimon said that possibility of recession in the US is not “off the table”. The Chairman and Chief Executive Officer (CEO) of JPMorgan Chase said, “The world is pricing in a soft landing, at probably 70-80%. I think the chance of a soft landing in the next year or two is half that. The worst case would be stagflation.”
Talking about US Federal Reserve's decision on whether interest rates should be lowered, Jamie Dimon said that economic indicators have been distorted by Covid-19. He said, “They can always cut quickly and dramatically. Their credibility is a bit at stake here. Unemployment in the United States is very low at the moment, wages continue to go up.”
Read more: Zerodha's Nithin Kamath is urging everyone to file advance taxes using this quick guide
What Fed reserve chair has said on lowering interest rates?
Federal Reserve Chair Jerome Powell said that the central bank is getting close to lowering interest rates, adding, “We’re waiting to become more confident that inflation is moving sustainably at 2%. When we do get that confidence — and we’re not far from it — it’ll be appropriate to begin to dial back the level of restriction."
