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Topic: Tesla Billionaire Elon Musk Issues $35 Trillion U.S Bankruptcy "Warning." (Read 262 times)

legendary
Activity: 3276
Merit: 2442
Elon has a point. The US national dent is growing exponentially. It is a public information.

https://www.usdebtclock.org/

Right now the US national debt is more than 35 trillion and it is growing a million dollars in every 30 seconds, a billion for every ~8 hours, in one day the US adds another ~$3 billion to its national debt.

Anyone with a half brain can see that it is a dead end. The US has no intention to pay its debt back as right now they can't even afford to pay the interest of the principal.

*Interest on the federal debt is now so immense that it’s consuming 40% of all personal income taxes.

*As deficit spending continues unchecked, urged on by the Biden administration, the debt is growing at a breakneck pace—over $500 billion in October alone.

*If federal finances continue on their current path, we are only a few years from the entirety of income taxes being needed to finance the debt.

The US is essentially broke and that's why we are seeing Ukraine and Israel attacking their neighbors.

The Biden administration needs a war to divert people's attention from poverty.

Only Trump can stop this madness.
hero member
Activity: 2856
Merit: 674
debt is not magic, its numeric

the US owes $35t to different countries, but these other countries have debts too
the simple solution is match reciprocal debts between countries and write them off to cancel them out on both sides

Incorrect. Most US debt is held by Americans, not foreigners. US debt held by foreigners is just under $8T--although, like you said, we also hold a lot of their debt, so net-net it's probably only about half of that.

Unlike the amateur-hour analysis that most people employ when it comes to US debt (including morons like Elon Musk), the US debt is money we borrow from ourselves.



I would agree with you. for detailed information about that debt. you can check the link below.

https://fiscaldata.treasury.gov/americas-finance-guide/national-debt/
member
Activity: 182
Merit: 47
debt is not magic, its numeric

the US owes $35t to different countries, but these other countries have debts too
the simple solution is match reciprocal debts between countries and write them off to cancel them out on both sides

Incorrect. Most US debt is held by Americans, not foreigners. US debt held by foreigners is just under $8T--although, like you said, we also hold a lot of their debt, so net-net it's probably only about half of that.

Unlike the amateur-hour analysis that most people employ when it comes to US debt (including morons like Elon Musk), the US debt is money we borrow from ourselves.

legendary
Activity: 4270
Merit: 4534
debt is not magic, its numeric

the US owes $35t to different countries, but these other countries have debts too
the simple solution is match reciprocal debts between countries and write them off to cancel them out on both sides
legendary
Activity: 2912
Merit: 6403
Blackjack.fun
I believe that the US national debt is a problem in the long run, but a problem the US is pretty good at managing so far. While there's no viable solution yet, they make sure to pay the interest rates in time and don't go into bankruptcy.

The solution is pretty simple, inflation!
The debt is 100 trillion and 3 times the GDP? Just drive inflation for a year by 100%, raising all wages by 100% and there you have it, the purchasing power stays the same, the stock market is still up cause more money comes in, and suddenly because of inflation the GDP is twice in size and the debt is just 1.5 the size of the GDP. It's a bit radical and it would affect the value of the $ but it will also make exports cheaper and imports costlier with the US being nearly independs on natural resources and food it will pass this without a hiccup.

This is the advantage of having the debt in the currency you own and can print!

IMO there is no guarantee that this bankruptcy will lead to a boom in the Bitcoin price.

It's quite the opposite, it's a guarantee Bitcoin will take a hit and will revert to levels worse than the Covid crisis, with the largest economy going bankrupt and sending every single country into death spiral who do you think will buy crypto? Saylor?  Cheesy Vietnam exports goods 25% worth of its GDP to the US, US tourists spend 150 billion worldwide, Salvador gets in remittances 6 billion every year, more than 10 times their entire Bitcoin stash, and these are just some random examples, the US going bankrupt would be a bloodbath.

jr. member
Activity: 70
Merit: 0
I believe that the US national debt is a problem in the long run, but a problem the US is pretty good at managing so far. While there's no viable solution yet, they make sure to pay the interest rates in time and don't go into bankruptcy. Musk just likes hype and thus posts things that will gain attention. It doesn't mean there's a real risk in the near future. Also, I'm honestly not sure whether an event like the US bankruptcy would be good or bad for Bitcoin. But my intuition is that it would be bad, with people panic selling and markets crashing because of how strong the US economic influence is.

I too think that it would be bad due to the people being desperate and the overall mood of them.
And, yeah, Musk is a person who would go with the hype just to get the crowd pumping, and what's better than something that was described in OP's post?  Roll Eyes
sr. member
Activity: 1400
Merit: 268
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IMO there is no guarantee that this bankruptcy will lead to a boom in the Bitcoin price. Whereas some think it could be the case that a debt crisis might push people to decentralized assets such as Bitcoin, it's similarly plausible that short-term market uncertainty pulls Bitcoin down. Musk's concerns are very valid: a government "whistling past the graveyard" in terms of debt interest payments in excess of over a trillion dollars annually. None of these, however, essentially pinpoint that Bitcoin is going to the moon. As always, Bitcoin faces its own set of volatility and market reactions to world-wide events; and these are not always positive.

Moreover, market reactions are determined by a host of factors, including geopolitical risks, regulations, and all other macroeconomic conditions. In this context, where the debt situation may nudge some towards Bitcoin, it is no sure bet for a price explosion.
legendary
Activity: 3234
Merit: 1399
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I believe that the US national debt is a problem in the long run, but a problem the US is pretty good at managing so far. While there's no viable solution yet, they make sure to pay the interest rates in time and don't go into bankruptcy. Musk just likes hype and thus posts things that will gain attention. It doesn't mean there's a real risk in the near future. Also, I'm honestly not sure whether an event like the US bankruptcy would be good or bad for Bitcoin. But my intuition is that it would be bad, with people panic selling and markets crashing because of how strong the US economic influence is.
jr. member
Activity: 70
Merit: 0
Sometimes, we really have to take everything with a grain of salt what Elon has been telling the media. I'm not a US citizen though, but when we read it, does it supposedly the US people needs to be scare of it?

Or is this something very bullish to Bitcoin, as it had been proven as a hedge on financial situation, just maybe there are just average American or middle income that will put their hard earn money to protect it against inflation as fiat with the continuous printing of it, will lose it's value over the years.

Totally agree Grin There were talks about the US debt for an eternity beforehand, and it always ended the same way.
As long as the US stands where it stands, nothing bad will happen, something bigger than crypto space should happen for that to change. Elon can just follow his own agenda on the matter, and that's fine, everybody has their goals in mind.
legendary
Activity: 3248
Merit: 1614
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Elon is stating facts, the fiat system is a huge ponzi. The dollar as the world reserve currency is running itself into the ground. The only way to stop it is if the US buys Bitcoin as a hedge. They could pay some of the debt that way when Bitcoin inevitably increases in value. They will do nothing though & the debt will keep increasing.
hero member
Activity: 2870
Merit: 594
Sometimes, we really have to take everything with a grain of salt what Elon has been telling the media. I'm not a US citizen though, but when we read it, does it supposedly the US people needs to be scare of it?

Or is this something very bullish to Bitcoin, as it had been proven as a hedge on financial situation, just maybe there are just average American or middle income that will put their hard earn money to protect it against inflation as fiat with the continuous printing of it, will lose it's value over the years.
donator
Activity: 4760
Merit: 4323
Leading Crypto Sports Betting & Casino Platform
Crazy how many people have become complacent about the level of debt we’re growing in the United States. This debt is relatively new and a giant chunk of it is from the last few years due to the mismanagement of the Covid hoax. We’ve increased the national debt by $340,000,000,000 in the last 3 days. Interest is now trillions per year. Elon is right on. Without major changes we are headed for bankruptcy and honestly I don’t even believe the necessary changes are possible in the current system.
legendary
Activity: 3472
Merit: 10611
Elon strikes again Cheesy

He is just bullshitting again to have his moment in the sun. I don't care enough to investigate this statement but the $35 trillion dollar debt wasn't created yesterday and he is just now remembering to criticize it because there is an election coming and he is supporting the candidate from the other side of the aisle.

In any case when the US economy falls apart, it will also cause a "depression"/recession and we already saw what the small recession did to bitcoin price.
There is a higher chance that the sell pressure on bitcoin would increase when that fall occurs, specially if it is sudden and catastrophic. (slow demise has less effect).
jr. member
Activity: 46
Merit: 1
$35 trillion in debt ? You obviously don't understand how this works. USA is not Venezuela, Zimbabwe or Yugoslavia.

11 seconds explanation video > https://www.youtube.com/watch?v=BWo0HvPpEtw
member
Activity: 182
Merit: 47
Too bad the economy doesn't actually work that way:

1. The US economy going down will trigger massive layoffs.

2. Massive layoffs and other uncertainty will cause people to pull out of their speculative investments--like Bitcoin--in order to pay the rent.

3. This will cause Bitcoin to be dumped onto the market, reducing its price.

Just look at the price of gold during previous downturns: it goes down with the rest of the economy. Bitcoin is no different these days, acting pretty much like other stocks and commodities, at least on the macro level.

My guess is that Musk is preparing to dump all of his BTC soon and wants to hype it as much as possible before he does that.

legendary
Activity: 2912
Merit: 6403
Blackjack.fun
Oh, Billy Bambrough again with his quota articles.  Grin

Guys, haven't you learned a thing in all these years? If there is a thing that died more times than Bitcoin but just as miraculously is still alive that's either the $ or the US economy.

US can anytime increase its so called debt celling and print more money. But in long term, that will have a bad impact on its economy. You need to understand that the dollar power of US has slowly started fading off.

Fading off? The $ has beaten any other currency in value in the last 4 years, everyone is keeping their valuables in $, every single wealthy billionaire has secret accounts in $, and even here on this forum, do you see anyone advertising something or paying in yuans or rupees or rubles? We are Bitcointalk and there are more services paying in $ than in BTC, yet some still believe that myth of de-dollarization, lol!

This reminds me of when Soleimani was buried and the crowd was chanting death to America while his coffin was carried by a Dodge truck and his daughter was taking pictures with an iPhone!

And most importantly, all American debt is denominated in US dollars, which virtually eliminates the possibility of bankruptcy.

Shh, don't tell them that the US could simply drive inflation to 50% to erase half of their debt while at the same time bankrupting everyone else, it doesn't fit with the narrative of doom and gloom.
legendary
Activity: 3010
Merit: 1154
Leading Crypto Sports Betting & Casino Platform
-cut-
Well, he is one of the genius brains we have in our time.
He(1) is(2) not(3) though(4).
He is more like Tony Stark ordered from Temu

I too agree to the point that he should stay away from price predictions but his warning about the US bankruptcy is very well intended. US is actually standing on a pile of debt beyond any healthy measure.

US can anytime increase its so called debt celling and print more money. But in long term, that will have a bad impact on its economy. You need to understand that the dollar power of US has slowly started fading off.
Elon also has bad track record of predicting anything. People just thought he would be intellectual as silicon valley has usually been linked with them, and no one wanted to question it. It's only when he is been talking with experts, when most people started to notice the fact that he is avoiding detailed questions. And there's also the issue where people don't seem to realize that wealth is not connected to intelligence.
legendary
Activity: 3080
Merit: 1500
He says he wants to be the head of D.O.G.E - ...
You can’t fully trust Elon when he talks about crypto investments, especially Bitcoin. DOGE was all hype back then, and he played a huge role in driving that. He seems to have no real principle—just playing on whatever benefits him. Remember when Tesla started accepting Bitcoin, only for him to announce in 2021 they’d stop due to environmental concerns? It shows he's unpredictable, and it’s hard to trust his stance on these matters.

Guy should have stuck with cars and rockets tbh. Ever since he bought Twitter and started sharing his "wisdom" on crypto it's been going downhill with him.

That is to say, I have as much trust in his judgement as I would have with, say, Jim Cramer. Though the latter is at least consistently wrong, whereas Elon is more of a wildcard.

Well, he is one of the genius brains we have in our time. I too agree to the point that he should stay away from price predictions but his warning about the US bankruptcy is very well intended. US is actually standing on a pile of debt beyond any healthy measure.

US can anytime increase its so called debt celling and print more money. But in long term, that will have a bad impact on its economy. You need to understand that the dollar power of US has slowly started fading off.
legendary
Activity: 3038
Merit: 2166
Playgram - The Telegram Casino
He says he wants to be the head of D.O.G.E - ...
You can’t fully trust Elon when he talks about crypto investments, especially Bitcoin. DOGE was all hype back then, and he played a huge role in driving that. He seems to have no real principle—just playing on whatever benefits him. Remember when Tesla started accepting Bitcoin, only for him to announce in 2021 they’d stop due to environmental concerns? It shows he's unpredictable, and it’s hard to trust his stance on these matters.

Guy should have stuck with cars and rockets tbh. Ever since he bought Twitter and started sharing his "wisdom" on crypto it's been going downhill with him.

That is to say, I have as much trust in his judgement as I would have with, say, Jim Cramer. Though the latter is at least consistently wrong, whereas Elon is more of a wildcard.
legendary
Activity: 896
Merit: 1020
I think what Elon wants to convey is that if the Democrats continue to take over the White House, the US public debt will be even larger and to get out of that problem, we should support and vote for Trump and the Republicans. I don't think he was referring to bitcoin or anything else. He has publicly supported Trump and as the presidential election approaches, I wouldn't be surprised if he makes more vile statements aimed at Democrats. That's how American politics works.

Let's say, if the US defaults, do you really believe the bitcoin price will skyrocket or will it be dumped? Personally I don't think bitcoin will explode if the US defaults and I don't think they will default either even though I don't like the US.

It is a valid warning because America's debt has kept growing and interest payments have grown to over $1 trillion.  But I suspect that there is a political reason for Elon Musk's alarm. He has openly supported Donald Trump for the US presidency, this might be a plan to give Democrats a bad name. But the US debt has always been increasing even when Trump was president. Trump has openly acknowledged that Musk will be part of his government if he wins. In fact, Trump called Elon a "cost-cutter" who will save the US Trillions. Elon's ability to reduce Twitter staff from 7,800 to 1500 made Trump give him that title.

I don't also think that America's bankruptcy will be good for the Bitcoin market. Bitcoin price is highly connected to the US economy, bankruptcy will affect the market adversely. I also doubt if the US will go bankrupt.        
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