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The CEO of Tesla, Elon Musk, has just issued a dire warning for Americans.
In a February 5 appearance on the Dwarkesh PodcastMusk said that America is hurtling towards bankruptcy as its national debt continues to rise.
“We are 1,000% going to fail as a country and fail as a country, without AI and robots,” he said (1). “Nothing else will solve the national debt.”
According to the Treasury Department, the national debt of the United States is now $38.56 trillion – and continues to grow as federal spending exceeds revenue (2). So far in fiscal year 2026, the government has already spent about $602 billion more than it collected (3).
Without productivity advancements from artificial intelligence and robotics, Musk painted a bleak picture of what’s to come, saying the country is “actually completely screwed because the national debt is piling up like crazy.”
He also warned that the cost of servicing that debt alone is becoming a heavy burden.
“The interest payments on the national debt exceed the military budget, which is a trillion dollars. So we have more than a trillion dollars only in interest payments,” he said.
And those costs could rise further. A recent report by the Committee for a Responsible Federal Budget projects that interest payments on America’s national debt will exceed $1.5 trillion in 2032 and reach $1.8 trillion by 2035 (4).
Musk is not the only one who is sounding the alarm about America’s debt and the rising interest costs associated with it. Ray Dalio, founder of the world’s largest hedge fund, Bridgewater Associates, has warned that the US is heading for a “debt death spiral”, where the government must borrow simply to pay the interest – a vicious cycle that feeds on itself.
But unlike Musk, Dalio does not foresee formal bankruptcy.
“There will be no default – the central bank will come in and we will print the money and buy it,” he said. “And that’s where the depreciation of money is.”
In other words, the government could never technically run out of dollars — but those dollars could lose value quickly. Musk has warned in the past that if current trends continue, “the dollar will be worth nothing.”
That erosion in the value of the dollar is already visible. According to the Federal Reserve Bank of Minneapolis, $100 in 2025 has the same purchasing power as just $12.06 had in 1970 (5).
The good news? Sophisticated investors have long found ways to protect their wealth — even when Washington’s fiscal math stops counting.
To prove your investments, Dalio emphasized the value of diversification – and highlighted one time-tested asset in particular.
“People don’t have, typically, an adequate amount of gold in their portfolio,” he said. “When times are bad, gold is a very effective diversifier.”
Gold has long been considered a safe haven. It cannot be printed out of thin air like fiat money and because it is not tied to any one currency or economy, investors often flock to it during periods of economic turmoil or geopolitical uncertainty, driving up its value.
Despite a recent pullback, gold prices are up more than 70% over the past 12 months.
Other prominent voices see more potential. The CEO of JPMorgan, Jamie Dimon recently said that in this environment, gold could “easily” rise to $10,000 per ounce.
One way to invest in gold that also provides significant tax advantages is to open a gold IRA with the help of Priority Gold.
Gold IRAs allow investors to hold physical gold or gold-related assets in a retirement account, thus combining the tax advantages of an IRA with the protective benefits of investing in gold, making it an option for those looking to help protect their retirement funds against economic uncertainties.
When you make a qualifying purchase with Priority Gold, you can receive up to $10,000 in precious metals for free.
Read More: Nearing retirement with no savings? Don’t panic, you are not alone. Here are 6 easy (and fast) ways to catch up
Gold is not the only asset that investors turn to in inflationary times. Real estate has also proven to be a strong hedge.
When inflation increases, property values often increase as well, reflecting the higher costs of materials, labor and land. At the same time, rental income tends to increase, providing landlords with an income stream that adjusts for inflation.
Over the past decade, the S&P Totality Case-Shiller US National Home Price NSA Index has jumped by more than 87%, reflecting strong demand and limited housing supply (6).
Of course, high home prices can make buying a home more difficult, especially with mortgage rates still high. And being a landlord isn’t exactly a hands-off job — managing tenants, maintenance and repairs can quickly eat up your time (and return).
The good news? You don’t need to buy property outright – or deal with leaky faucets – to invest in real estate today. Crowdfunding platforms like Arrived offer an easier way to gain exposure to this income-generating asset class.
Backed by world-class investors like Jeff Bezos, Arrived allows you to invest in rental housing shares for as little as $100, all without the hassle of mowing the lawn, fixing leaky faucets or managing difficult tenants.
The process is simple: Look for a curated selection of homes that have been vetted for their appreciation and income potential. Once you find a property you like, select the number of shares you wish to buy and then invest as you start receiving any positive rental income distributions from your investment.
Mogul is another option. It’s a real estate investment platform that offers fractional ownership in blue-chip rental properties, giving investors monthly rental income, real-time appreciation and tax benefits — without the need for hefty down payments or 3 am tenant calls.
Founded by former Goldman Sachs real estate investors, the team handpicks the top 1% of single family rental homes nationwide for you. In other words, you get access to institutional quality offerings for a fraction of the usual cost.
Each property goes through a rigorous verification process, which requires a minimum return of 12% even in downturn scenarios. Across the board, the platform has an average annual IRR of 18.8%. Offers often sell out in less than three hours, with investments typically ranging between $15,000 and $40,000 per property.
You can sign up for an account and then browse available properties here.
Prominent investors like Dalio often stress the importance of diversification – and for good reason. Many traditional assets tend to move together, especially during periods of market stress.
That message feels especially relevant today. Nearly 40% of the S&P 500’s weight is concentrated in its ten largest stocks and the index’s CAPE ratio hasn’t been this high since the dot-com boom.
This is where, for many investors, alternative assets come into play. These can include everything from real estate and precious metals to private equity and collectibles.
But there is one store of value that regularly flies under the radar: It is scarce by design, coveted worldwide and often locked away by institutions.
We’re talking about postwar and contemporary art — a category that has outperformed the S&P 500 with a low correlation since 1995.
It’s easy to see why pieces of art often reach new heights at auctions: The supply of the best works of art is limited and many of the most desirable pieces have already been snapped up by museums and collectors. That scarcity can also make art an attractive option for investors looking to diversify and preserve wealth during periods of high inflation.
Until recently, buying art was a domain reserved for the ultra-rich – as in 2022 when an art collection owned by the late Microsoft co-founder Paul Allen sold for $1.5 billion at Christie’s New York, making it the most valuable collection in auction history.
Now, Masterworks — a platform for investing in shares of blue-chip artwork by renowned artists, including Pablo Picasso, Jean-Michel Basquiat and Banksy — can help you get started with this asset class. It’s easy to use and, with 25 successful releases to date, Masterworks has distributed over $65 million in total revenue (including principal).
Simply browse their impressive portfolio of paintings and select how many shares you wish to purchase. Masterworks can handle all the details, making high-end art investments both accessible and effortless.
New offers sell out in minutes, but you can jump on their waiting list here.
Note that past performance is not indicative of future earnings. Investing involves risk. See the Reg A disclosure at masterworks.com/cd.
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Dwarkesh Patel and Stripe (1); Fiscal Data (2), (3); Committee for a Responsible Federal Budget (4); Federal Reserve Bank of Minneapolis (5); S&P Global (6)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.