Elon Musk issues stark warning for US amid debt crisis

Elon Musk has once again sent shockwaves through Washington, this time by calling the US government “basically unfixable” and warning that the country could be “toast” if it doesn’t tackle its growing debt crisis.

Speaking at the recent “All In Summit,” the Tesla CEO reflected on his brief but headline-making stint as head of the Department of Government Efficiency (DOGE).

Musk jokingly called it “a hell of a side quest,” before getting serious about what he learned.

“The government is basically unfixable,” Musk declared, drawing laughter and applause from the crowd.

He pointed to America’s national debt, warning that the US now pays more in interest than it spends on defense, a situation he called “insane.”

Treasury data shows the US paid roughly $933 billion in net interest so far in fiscal 2025, surpassing the $841 billion allocated to defense.

“If AI and robots don’t solve our national debt,” Musk added bluntly, “we’re toast,” Musk noted.

DOGE claims to have saved the government $206 billion, though critics have questioned the math.

Musk’s warning echoes other billionaire voices like Ray Dalio, who has long warned of a looming “debt death spiral” where the US must borrow simply to pay interest — a cycle that leads to inflation and currency decline.

However, with the national debt now at $37.45 trillion, Musk’s forecast no longer feels far-fetched.