Billionaire Warns U.S. Debt Crisis Could Deepen After New Bill

Billionaire investor Chamath Palihapitiya is sounding the alarm over a new piece of legislation that he believes could accelerate America's financial decline.

On a recent episode of the All-In Podcast, Palihapitiya criticized the passage of The One, Big, Beautiful Bill—a sweeping package that extends the Trump-era tax cuts and adds pro-growth policies. Passed by the House on May 22, the bill was framed as a catalyst for economic expansion, but Palihapitiya sees it differently.

“This is a shift away from fiscal discipline,” he said, describing it as a rush job that leans into “debt-financed industrial policy” rather than structural reform. He warned that rising interest rates could further expose the nation’s vulnerabilities, projecting 10-year Treasury yields to rise above 5% and 30-year yields potentially hitting 6.5% by year’s end.

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Such an outcome, he argues, would push investors away from U.S. debt toward alternatives like Bitcoin and gold, while credit rating agencies could respond by downgrading U.S. sovereign debt.

Palihapitiya also interpreted recent comments by Elon Musk as a similar warning. Musk has emphasized that only rapid economic expansion can offset the government’s reckless spending.

“Radical productivity gains are now essential,” Musk wrote, stressing that without exponential GDP growth, the U.S. risks spiraling into financial crisis.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.