Elon Musk warns America will ‘1,000%’ go bankrupt, ‘fail as a country’ due to crazy debt

Elon Musk warns America will ‘1,000%’ go bankrupt, ‘fail as a country’ due to crazy debt — protect your finances

Jing Pan  Moneywise    Fri, February 6, 202  

Tesla CEO Elon Musk has just issued a dire warning for Americans.

In a Feb. 5 appearance on the Dwarkesh Podcast, Musk said America is barreling toward bankruptcy as its national debt continues to climb.  “We are 1,000% going to go bankrupt as a country and fail as a country, without AI and robots,” he said (1). “Nothing else will solve the national debt.”

According to the Treasury Department, U.S. national debt now stands at $38.56 trillion — and it continues to grow as federal spending outpaces revenue (2). So far in fiscal year 2026, the government has already spent about $602 billion more than it has collected (3).

Without a productivity breakthrough from artificial intelligence and robotics, Musk painted a bleak picture of what lies ahead, saying the country is “actually totally screwed because the national debt is piling up like crazy.”

He also warned that the cost of servicing that debt alone is becoming a heavy burden.

“The interest payments on national debt exceed the military budget, which is a trillion dollars. So we have over a trillion dollars just in interest payments,” he said.

And those costs could rise further. A recent report from the Committee for a Responsible Federal Budget projects that interest payments on America’s national debt will surpass $1.5 trillion in 2032 and reach $1.8 trillion by 2035 (4).

Musk isn’t the only one sounding the alarm over America’s debt and the soaring interest costs tied to it. Ray Dalio, founder of the world’s largest hedge fund, Bridgewater Associates, has warned that the U.S. is heading toward a “debt death spiral,” where the government must borrow simply to pay interest — a vicious cycle that feeds on itself.

But unlike Musk, Dalio doesn’t foresee a formal bankruptcy.

“There won't be a default — the central bank will come in and we'll print the money and buy it,” he said. “And that's where there's the depreciation of money.”

In other words, the government may never technically run out of dollars — but those dollars can lose value fast. Musk has warned in the past that if current trends continue, “the dollar’s going to be worth nothing.”

That erosion in the value of the dollar is already visible. According to the Federal Reserve Bank of Minneapolis, $100 in 2025 has the same purchasing power as just $12.06 did in 1970 (5).

The good news? Savvy investors have long found ways to protect their wealth — even when Washington’s fiscal math stops adding up.

A safe-haven shines again

To shock-proof your investments, Dalio emphasized the value of diversification — and highlighted one time-tested asset in particular.

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