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Elon Musk: US default is only a matter of time


Avril, 19 2023
watermark Economic news

American businessman and billionaire Elon Musk believes that default in the US is only a matter of time. He stated this in his response to the publication of the White House on Twitter that the Republican plan may be to default on the US debt.


«Given the spending of the federal budget, it is a matter of time, not whether we will default,» Musk wrote on his social media account.


Earlier, Speaker of the House of Representatives of the US Congress Kevin McCarthy said that the US national debt has become «a ticking bomb that will explode due to lack of responsible action.» Last Monday, he also said that a US default is not an option. At the same time, the politician ruled out the possibility of raising the debt ceiling without concessions from the US administration.


As you know, the White House demands from Congress to expand borrowing limits without any conditions, warning that otherwise the country will not be able to service its debt obligations in the summer. US President Joe Biden has refused talks with McCarthy over the debt ceiling and is demanding that its increase be automatic, as it has always been in the past.


In January, the Treasury notified Congress that it was beginning to apply extraordinary measures through June 5 in connection with an estimated $31.381 trillion government debt ceiling. Then the head of the department called on lawmakers to increase borrowing limits in order to avoid default.


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Foreign exchange trading carries a high risk of losing money due to leverage and may not be suitable for all investors. Before deciding to invest your money, you should carefully consider all the features associated with Forex, as well as your investment objectives, level of experience, and risk tolerance.