Monday, April 15, 2024

US default on debt is a matter of time, says Elon Musk

US businessman Elon Musk on Wednesday said the US is bound to default on its debt at some point.

“Given Federal expenditures, it is a matter of when, not if, we default,” he said on Twitter.

He was commenting on a White House video that lashed into Republicans for their refusal to approve a higher government debt ceiling.

The US administration has recently called on Congress to raise the ceiling that’s now set at $31.4 trillion. Republicans, who now control the House, are traditionally skeptical about allowing greater debt and are pushing for reducing government spending.

US Secretary of the Treasury Janet Yellen earlier said the agency will need to take “extraordinary measures” to prevent a default after the nation reached its debt ceiling. The official said the measures should allow to pay the bills until June.

US President Joe Biden signed a bill at a the end of 2021 to raise the debt ceiling by $2.5 trillion to $31.4 trillion, averting a potential default. Yellen said at the time that the bill prevented a shortage of funds for the federal government.

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