Is Elon Musk Right To Criticize the Rising Debt Ceiling and Bet On Bitcoin?
Elon Musk has once again turned to social media to criticize the Trump administration’s handling of the national debt. The Tesla founder has particularly called out the recently signed One Big Beautiful Bill Act as crucial in further amplifying an already alarming deficit.
Since traditional methods are proving ineffective, experts from Bitwise and Sentora suggest that alternatives like Bitcoin deserve consideration for reducing interest rates and curbing excessive spending.
Musk’s Debt Outcry: From DOGE to America PartyA lot has happened with Elon Musk over the past few days. The former head of the Department of Government Efficiency (DOGE), the pseudo-federal agency responsible for reducing government overspending, kicked off July by going on X to rant about the nation’s spending habits.
It is obvious with the insane spending of this bill, which increases the debt ceiling by a record FIVE TRILLION DOLLARS that we live in a one-party country – the PORKY PIG PARTY!!
Time for a new political party that actually cares about the people.
Musk’s most recent posts build on previous ones in which he explicitly called out President Trump’s One Big Beautiful Bill, which was signed into law this week. He also said the bill would increase the debt ceiling by five trillion dollars.
Amid an ongoing exchange of affronts between Elon Musk and Trump over the subject, the Tesla founder decided to form his own political space: the America Party.
Musk stated that the party’s goal is to “give you back your freedom” and address what he views as a “one-party system” regarding wasteful spending and graft. His poll on X showed significant support for a new political party.
What’s certain, however, is that beyond the political spectacle, the discussion around the United States’ national fiscal health is constantly being refloated for its urgency.
The Looming “Debt Bomb” and Market WarningsThe United States faces a serious, ongoing fiscal problem that’s reaching alarming proportions. Instead of controlling the growing deficit, lawmakers keep raising the ceiling, which Musk calls “a debt bomb ticking.”
Though policymakers have done little to counter this chronic issue, the market is increasingly speaking out against it.
“Debt is climbing fast, interest payments are now the government’s largest single line item, and, worst of all, there’s no credible plan to rein it in... and, as interest payments continue to snowball, the notion that ‘something’s got to give’ is gaining traction,” Danny Nelson, research analyst at Bitwise, told BeInCrypto.
If the current situation continues, experts forecast surging inflation and a further decline in the dollar’s value. Even though there are clear, established ways to fix this, no one seems willing to use them.
Political Aversion to Debt SolutionsTraditional methods for addressing rising debt, such as spending cuts and tax increases, are highly unpopular. As a result, politicians across the political spectrum are reluctant to implement them.
“History shows there are only a few brutal ways out of a debt spiral—and war tops the list. Short of that, Washington could slash spending on big-ticket items like infrastructure, Social Security, and defense, or it could impose steep tax hikes. Both fixes are political poison, especially in a democracy where voters recoil at benefit cuts and higher taxes,” Patrick Heusser, Head of Lending and TradFi at Sentora, explained.
Continuing with a now well-established tradition, lawmakers have opted for the back-door option: brushing the matter under the carpet for the future leaders of the United States to deal with.
