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Investors Issue Dire Warnings Over U.S. Fiscal Policy

Billionaire investor Chamath Palihapitiya and tech mogul Elon Musk have sounded alarms about the economic fallout from a newly passed congressional bill. The legislation, intended to boost growth by extending Trump-era tax cuts and funding new initiatives, has sparked fears of a debt crisis due to its reliance on borrowing rather than fiscal restraint.

Palihapitiya criticized the bill as a politically motivated gamble, arguing that surging Treasury yields (10-year at 4.5% and climbing) could soon exceed sustainable levels, triggering investor retreat from U.S. bonds. He warned of a potential domino effect: credit downgrades, a rush to assets like Bitcoin and gold, and a weakened dollar.

Musk reinforced these concerns, stating that only transformative productivity gains and explosive GDP growth—not short-term fixes—can offset the risks of runaway government spending. Both agree that without urgent reforms, the U.S. risks a financial reckoning with global repercussions.