Global Markets
Home›Global Markets›Trade & Tariffs›Elon Musk warns the US faces bankruptcy as debt and in…
Elon Musk warns the US faces bankruptcy as debt and interest rise
He said the cost of servicing the national debt exceeds the US military budget, citing $1 trillion-plus in interest payments.
Elon Musk warned in a Feb. 5 appearance on the Dwarkesh Podcast that the United States is on a path toward bankruptcy as national debt continues to climb, arguing that AI and robotics would be needed to address the problem, according to Yahoo Finance.
Yahoo Finance cited US Treasury data that the national debt is roughly $39.6 trillion and rising, with the federal deficit reaching about $1.37 trillion over the first nine months of fiscal year 2026 as spending outpaces revenue.
Musk also said interest payments on the national debt are becoming a heavy burden, claiming they exceed the military budget and amount to over $1 trillion in interest payments.
The report added that the Pentagon estimates the US has spent about $37.5 billion on the war in Iran so far, and it referenced public policy expert Linda Bilmes estimating the war could cost upwards of $1 trillion, with interest costs potentially adding billions more over time.