Elon Musk warns America is going bankrupt ‘extremely quickly’ — Trump says he'll appoint the Tesla billionaire as the country's 'cost cutter' with a salary of zero

This isn't the first time Musk has voiced concerns about the country’s debt crisis.

In July, he shared a headline stating, “Interest Payments on US National Debt Will Shatter $1,140,000,000,000 This Year – Eating 76% of All Income Taxes Collected: Report.” Musk added his own stark commentary: “America is going bankrupt btw.”

Musk’s warnings are rooted in a troubling reality. The U.S. national debt stands at $35.3 trillion — and continues to rise. It’s not just the staggering size of the national debt that’s concerning, but the alarming rate at which it continues to grow due to the deficit. In fiscal year 2024, the federal government spent $1.9 trillion more than it collected.

Musk noted that interest payments on the national debt have surpassed $1 trillion annually: “We're adding a trillion dollars to our debt, which our kids and grandkids are going to have to pay somehow.”

As the debt continues to balloon, Musk warned that eventually, "the only thing we'll be able to pay is interest."

But can the country really go bankrupt? It's a complicated question because the federal government cannot file for Chapter 11 bankruptcy reorganization. Congress would have to decide to let the federal government default on its debt, otherwise it can keep borrowing as long as there is demand from investors for government bonds.

How long this can continue and the debt pile continue to grow depends on whom you ask and there are various studies looking at the possibilities. Many economists fear runaway inflation if the government keeps printing money to serve its needs. According to the non-partisan Peter G. Peterson Foundation, rising debt affects the economy in several ways — more spending on interest costs means less to invest in the public and economic growth and lower confidence in the government’s ability to repay debt would reduce private investment.

"Technically speaking, the government can't go bankrupt because it only promised to hand over a certain number of dollars; it didn't promise what the value of those dollars would be. Because the value of the dollars was never specified, the government can print enough to render the dollars nearly worthless. To the rest of us, the effect is the same as the government going bankrupt," wrote the co-hosts of podcast "Words & Numbers."

Republican presidential nominee Donald Trump has taken notice of the growing debt, and Musk is a key part of his proposed solution.

‘He can save trillions’

At a rally in Walker, Michigan, on Sept. 27, Trump unveiled his plan to enlist Musk to tackle the issue.

“I’m going to get Elon, and he’s great at this, he’s going to be our cost-cutter. I think he can save trillions,” Trump told an energized crowd.

However, Trump acknowledged that Musk is juggling numerous responsibilities and likely won't be available for the role full-time.

“I don’t think I can get him full-time because he’s a little bit busy sending rockets up and all the things he does. But he’s so much into that, he said the waste in this country is crazy,” Trump added.

Musk is, indeed, a man of many ventures. Beyond leading Tesla, he’s the founder, CEO, and chief engineer of SpaceX, which designs, manufactures, and launches rockets and spacecraft. Musk also co-founded Neuralink, a company developing implantable brain-machine interfaces.

And Trump doesn’t plan to pay Musk for his efforts — which, with a net worth of $270 billion, Musk probably doesn’t need.

“He’s going to do it for zero. He doesn’t want anything,” Trump declared.

Musk endorsed Trump for president on July 13, following a failed assassination attempt on the former President at a campaign rally in Butler, Pennsylvania.

When Trump later rolled out his economic proposals in September—including a government efficiency commission to be led by Musk — the Tesla CEO expressed his willingness to take on the role.

“I look forward to serving America if the opportunity arises. No pay, no title, no recognition is needed,” Musk wrote in a post on X.

‘Once in a lifetime’ opportunity

Musk likened the U.S. to “a person at scale that has racked up too much credit card debt,” cautioning that the situation does not end well and the country needs to reduce its spending.