Elon Musk’s $35.7 Trillion Plan to Prevent Financial Crisis Sparks Massive Bitcoin Speculation
Tesla billionaire Elon Musk has hit the campaign trail for former U.S. president Donald Trump in recent weeks, repeatedly warning of a looming “financial emergency.”
Fears over the U.S.’s $35.7 trillion “debt bomb” have fed into expectations the bitcoin price could soar in coming years while the Federal Reserve has been accused of “declaring war” on bitcoin.
Now, as a leak reveals China could be about to drop a $1.4 trillion bombshell on the bitcoin price, details have emerged of Tesla chief executive Elon Musk’s “Doge” plan to avert a debt crisis amid warnings of “cataclysmic economic collapse.”
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Tesla chief executive Elon Musk has warned the U.S. is the verge of a “financial emergency” that … [+]
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“I met with Elon and we spent two hours together and and I told him we were going to create the department Doge [Department Of Government Efficiency],” Howard Lutnick, the chief executive of Wall Street giant Cantor Fitzgerald who is also heading up Republican candidate Donald Trump’s transition team, told investor and YouTuber Anthony Pompliano.
The Doge department is named after the shiba inu doge meme that’s also linked to the dogecoin cryptocurrency, named by Elon Musk as his “favorite” cryptocurrency and accepted as payment by his Tesla car company.
“We’re going to rip the waste out of our $6.5 trillion budget and we are going to then balance the budget … we have offices we don’t use we have procurement waste at vast scale and I mean vast scale,” said Lutnick, who claims to have hundreds of millions of dollars worth of exposure to bitcoin, adding “someone has to have the guts to do it.”
U.S. national debt has skyrocketed in recent years, crossing the $34 trillion mark at the beginning of 2024, largely due to Covid and lockdown stimulus measures that sent inflation spiraling out of control and forced the Federal Reserve to hike interest rates at a historical clip.
“Just the interest payments on the debt are 23% of all federal tax revenue,” Musk said during a Trump campaign rally last week, later calling the situation a “financial emergency” on X. “The interest payments now exceed the Defense Department budget, which is $1 trillion a year.”
The weight of the spiraling U.S. debt pile has caused consternation among prominent investors.
“When your debt to GDP reaches a certain level and you don’t reduce federal spending fast enough it becomes a compounding problem you cannot get away from,” investor David Friedberg said during an episode of the All In Podcast this week, adding “everyone’s putting their assets” into gold and bitcoin.
“This has been the beginning of the cataclysmic economic collapse of every great Empire in the last 500 years … [if you’re] not able to get out of your debt spiral and the markets are telling us that if the U.S. doesn’t take drastic action in reducing its spending and reducing the deficit levels so that we can actually address the payment obligations on the outstanding debt that we’ve already issued, the U.S. dollar is going to have a real problem and the creditworthiness of the United States is challenged.”
Elon Musk is “going to cut waste and he’s going to cut the size of the government by and save us a trillion dollars,” Lutnick said, going on to say it will then be his job to take the U.S. as a $500 trillion asset and “make a trillion dollars off of it” via tarrifs and the sale of natural resources which will be used to reduce the U.S. federal government’s deficit.
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The bitcoin price has surged this year, eclipsing its previous all-time high as Tesla billionaire … [+]
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Over the summer, Musk met with El Salvador’s bitcoin-backing president Nayib Bukele, who made history when he adopted bitcoin as legal tender in El Salvador in 2021, with Bukele predicting the U.S.’s days could be numbered.
Meanwhile, Donald Trump has also floated plans to create a U.S. bitcoin strategic reserve if reelected—predicting the bitcoin price could eventually eclipse gold—and the possibility of using bitcoin to pay off the U.S.’s $35 trillion debt pile.
Bitcoin “is not a currency, it is a commodity like gold, like oil,” Lutnick told Pompliano. “I could sell oil, I can mine gold and sell gold, I should be able to mine bitcoin and sell bitcoin to who anyone.”
Trump has said he wants all bitcoin to be mined in the U.S., repeatedly saying he will make the U.S. the world’s crypto capital if he retakes the White House.
“I have hundreds of millions of dollars of exposure to bitcoin and it will be billions,” Lutnick said. “Bitcoin, which is rare and is special, will become ever more rare, ever more valuable, over time it’ll be financed just like gold [and] oil. Bitcoin will be way, way, way higher—sometimes lower—you just have to have faith.”
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