Elon Musk, the world's wealthiest individual, has issued a stark warning and threatened to establish a new political entity in the United States, to be named the 'America Party.' This proposed party aims to challenge the long-standing dominance of the Democratic and Republican parties, which have historically governed US elections and produced nearly all American presidents.

Musk's threat stems from his strong opposition to an economic bill championed by current US President Donald Trump. The bill, which has already cleared the House of Representatives and is now awaiting judgment in the Republican-controlled Senate, is described by Trump as fulfilling his campaign promises on tax cuts, immigration, defense, energy, and the debt limit. However, Musk vehemently opposes it, primarily because he asserts it would inflate the US national debt by approximately five trillion dollars. In a series of posts on his X platform, Musk declared, "If this insane spending bill passes, the America Party will be formed the next day. Our country needs an alternative to the Democrat-Republican uniparty so that the people actually have a VOICE."

The bill faces a complex political landscape, with Democratic lawmakers also expressing strong opposition, though for different reasons. They argue that the legislation would disproportionately benefit the super-rich through tax cuts, while simultaneously cutting essential services like healthcare and Medicaid for over a million impoverished Americans and reducing school feeding programs for millions of children from low-income families.

The current rift between Musk and Trump marks a significant shift in their relationship. Previously, Musk and Trump were considered allies, with the billionaire financially contributing to Trump's past presidential campaign and supporting other Republican candidates. However, their relationship deteriorated recently, partly due to Musk's public criticism of Trump's economic policies and the contentious bill, leading to what has been described as a "public and ugly fight." This comes after President Trump had reportedly warned of "serious consequences" for Musk's interests if he were to finance the Democratic Party.

Further escalating his stance against the bill, Musk has also pledged to financially support challengers to Republican lawmakers who vote in favor of the legislation. He emphasized his belief that any member of Congress who campaigned on fiscal responsibility but supports this substantial debt increase "should hang their head in shame" and face defeat in their upcoming primaries. However, he did not indicate any intention of supporting Democratic lawmakers.