Musk warns of US bankruptcy

The United States is at risk of bankruptcy unless “major and immediate” action is taken to address government spending amid mounting federal debt, Elon Musk has warned.

The SpaceX CEO and owner of X is slated to co-lead the upcoming Department of Government Efficiency (DOGE), an agency tasked with reducing unnecessary federal expenditures once Donald Trump assumes office. Musk, who has previously raised concerns about the possibility of US bankruptcy, reiterated his warning in a post on X on Friday.

“Major and immediate action is needed to prevent America from going bankrupt,” Musk wrote in response to a DOGE post discussing unchecked federal spending.

DOGE noted that the last comprehensive review of the federal government took place in 1984, when the national debt was $1.6 trillion, with a debt-to-GDP ratio of about 38%. Today, the ratio has surged to…