Tesla billionaire Elon Musk has joined forces with former presidential candidate Ron Paul to push for a “financial emergency” response to the US debt crisis, which is spiraling out of control at $36 trillion. The proposal involves creating a “Doge department” – a nod to the shiba inu meme and dogecoin cryptocurrency that Musk claims as his favorite.
Musk’s efforts come after he backed Paul for Federal Reserve chair, with both leaders arguing that soaring US debt will create a “doom loop” that pushes bitcoin higher. The price of bitcoin surged past $100,000 per coin following Trump’s election victory, fueling speculation that the new administration may establish a national reserve.
As US senator Mike Lee pointed out, the climbing debt clock is indeed “terrifying,” with $34 trillion in government spending and $35 trillion in total debt since 2024. Inflation has risen above 10% due to Covid-era stimulus measures, forcing interest rates to hike at a record pace.
Trump’s crypto czar David Sacks confirmed that an internal working group is exploring the feasibility of a national bitcoin reserve, with the Doge department potentially powered by this technology. The project aims to “wipe out” US debt by leveraging cryptocurrency and digital assets.
The proposed reserve could further boost dogecoin prices, which have surged in tandem with bitcoin following Trump’s election. With Musk at the helm, investors are optimistic that his involvement will propel the meme-based cryptocurrency even higher.
Source: https://www.forbes.com/sites/digital-assets/2025/02/16/tesla-ceo-elon-musk-issues-terrifying-36-trillion-warning