How to End Inflation and Reduce Forever Interest Rates: Elon Musk's Perspective

Elon Musk, billionaire and founder of Tesla, SpaceX, has offered a clear view on how to end inflation and reduce long-term interest rates. According to him, the key lies in controlling government spending and ensuring economic growth outpaces the rate of money supply. Why does inflation occur? Inflation usually occurs when the money supply grows faster than the rate of creating real goods and services. When the government spends excessively and prints money without real value support, the prices of goods and services rise, reducing people's purchasing power. Furthermore, another important issue is public debt. When the government continues to borrow to finance expenditures, they have to issue bonds to attract capital. This leads to competition between the government and the private sector in capital mobilization, pushing interest rates higher. As a result, people have to pay more for loans to buy houses, cars, tuition fees, and credit card debt. Solution: Budget deficit reduction Elon Musk believes that if the government reduces the budget deficit and controls spending reasonably, the economy could achieve an ideal state, where:

✅ No inflation - When the actual amount of goods and services increases faster than the money supply, prices will stabilize. ✅ Low interest rates - When the government is no longer borrowing excessively, competitive pressure in the bond market decreases, leading to lower interest rates. This means:

➡️ People must pay less for home, car, and education loans.

➡️ Workers' living standards improve as living costs decrease.

Businesses can access cheaper sources of capital for investment and development, boosting the economy. DOGE and the Role of Cryptocurrency Musk has long supported Dogecoin (DOGE) and cryptocurrencies as an alternative solution to traditional financial systems. Cryptocurrencies can help reduce dependence on government monetary policies, allowing for quick transactions, low costs, and less affected by government inflation. Conclusion According to Elon Musk, a sustainable developed economy requires a balance between money supply and goods production, along with tight government spending control. By achieving that, we can eliminate inflation, reduce interest rates, and improve the lives of millions of people.