Tesla Billionaire Elon Musk Declares ‘Financial Emergency’ and Announces $35.7 Trillion ‘Debt Bomb’ Led to Bitcoin’s Rise to Gold Rival

Tesla billionaire Elon Musk, The person who surprised traders this week with a shocking Bitcoin boostHe has warned many times in recent weeks: The USA is on the verge of “bankruptcy”.

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The Bitcoin price has soared this year as fears about a mounting $35.7 trillion debt pile pushed the price of gold to an all-time high.With the Fed caught in the middle of a “nightmare” scenario.

Now, Musk is working overtime to win. “crypto president” Donald Trump Returning to the White House, he described the US government’s $1 trillion annual interest payments as a “fiscal emergency.” Inflation fears are driving another legendary investor to buy bitcoin and gold.

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“Interest payments on debt alone account for 23% of all federal tax revenue,” Musk later said at Trump’s campaign rally. to call For X, the situation is “financial emergency.” “Interest payments now exceed the Department of Defense budget, which is $1 trillion a year. That’s a lot of money.”

The price of Bitcoin fell this year to just under $70,000 per Bitcoin, an all-time high, and has risen rapidly along with the price of gold; Investors believed that high interest rates combined with a large increase in budget deficits would create a feedback loop and force governments to take monetary measures. print more money.

Tesla continues to hold about 10,000 Bitcoins, sometimes called digital gold, on its balance sheet last week, worth about $800 million He sparked fears that his Bitcoin might be about to be cashed out when he suddenly moved it to new wallets.

The US national debt has increased rapidly in recent years and exceeded $34 trillion at the beginning of 2024; This was largely due to Covid and lockdown stimulus measures, which caused inflation to spiral out of control and forced the Federal Reserve to raise interest rates at a historic moment.

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Earlier this year, Bank of America analysts warned that the US debt burden would reach $1 trillion every 100 days.Bitcoin potentially fueling price rise— and could reach $36 trillion by the end of 2024.

This week, legendary billionaire investor Paul Tudor Jones warned that “all roads lead to inflation.” tells CNBC that he is “long gold” and “long bitcoin” as a result.

“Under Trump, the budget deficit increases by $500 billion a year; under (Vice President Kamala) Harris’ plan, it increases by another $600 billion a year. I feel like these are just pipe dreams,” Tudor Jones said. , who at the beginning of this year warned The “debt bomb” broke out in the United States as a result of “fiscal recklessness.”

In 2020, Tudor Jones helped launch the Covid-era bitcoin and crypto bull run when he emerged as one of Wall Street’s first bitcoin supporters, calling it the “fastest horse to beat inflation.”