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Tesla CEO Elon Musk just issued a dire warning to Americans.
In an appearance on February 5 at Dwarkesh PodcastMusk said America is headed for bankruptcy as its national debt continues to rise.
“We will go 1,000% bankrupt as a country and fail as a country without artificial intelligence and robots,” he said (1). “Nothing else will solve the national debt.”
According to the Treasury Department, the US national debt now stands at $38.56 trillion – and continues to rise as federal spending outpaces revenue (2). To date, in fiscal year 2026, the government has already spent about $602 billion more than it has taken in (3).
Without a productivity performance from AI and robotics, Musk painted a bleak picture of what’s to come, saying the country is “actually totally screwed because the national debt is piling up like crazy.”
He also warned that just the cost of servicing that debt is becoming a heavy burden.
“The interest payments on the national debt exceed the military budget, which is a trillion dollars. So we have over a trillion dollars in interest payments alone,” he said.
And those costs could rise even more. 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 alone in sounding the alarm about America’s debt and rising interest costs. Ray Dalio, founder of the world’s largest hedge fund, Bridgewater Associates, has warned that the US is heading for a “debt death spiral” in which the government must borrow simply to pay interest — a vicious cycle that feeds on itself.
But unlike Musk, Dalio doesn’t foresee formal bankruptcy.
“There won’t be a default – the central bank will come in and we’ll print the money and buy it,” he said. “And there is the depreciation of money.”
In other words, the government may never run out of dollars, but those dollars can lose value quickly. Musk has warned in the past that if current trends continue, “the dollar will be worth nothing.”
That erosion of the dollar’s value is already visible. According to the Federal Reserve Bank of Minneapolis, $100 in 2025 has the same purchasing power as just $12.06 in 1970 (5).
The good news? Savvy investors have long found ways to protect their wealth — even when Washington’s tax math stops adding up.
To protect your investments, Dalio emphasized the value of diversification and singled out one time-tested asset in particular.
“People usually don’t have 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 single currency or economy, investors often flock to it during times of economic turmoil or geopolitical uncertainty, increasing its value.
Despite a recent pullback, gold prices are up more than 70% over the past 12 months.
Other prominent voices see additional potential. JPMorgan CEO Jamie Dimon recently said that in this environment, gold can “easily” rise to $10,000 an ounce.
One way to invest in gold that also offers significant tax advantages is to open a gold IRA with Priority Gold.
The Gold IRA allows 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 who want 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: Approaching retirement with no savings? Don’t panic, you are not alone. Here are 6 easy ways to catch up (and fast)
Gold is not the only asset that investors turn to during inflationary times. Real estate has also proven to be a strong hedge.
When inflation rises, property values often rise as well, reflecting higher costs of materials, labor and land. At the same time, rental income tends to rise, giving landlords an income stream that adjusts to inflation.
Over the past ten years, the S&P Totality Case-Shiller US National Home Price NSA Index has increased 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 hands-off work—tenant management, maintenance, and repairs can eat up your time (and your returns) quickly.
The good news? You don’t have to buy a property outright – or deal with running 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 lets you invest in rental housing shares for as little as $100, all without the hassle of mowing lawns, fixing leaky faucets, or managing difficult tenants.
The process is simple: browse 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 want to buy and then sit back 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 prime rental properties, offering investors monthly rental income, real-time appreciation and tax benefits – without the need for a large down payment or 3am calls from tenants.
Founded by former Goldman Sachs real estate investors, the team handpicks the top 1% of single-family rental homes across the country for you. In other words, you get access to institutional-quality offerings for a fraction of the usual cost.
Each property is subject to a rigorous vetting process that requires a minimum return of 12% even in downside scenarios. Overall, the platform shows an average annual IRR of 18.8%. Listings often sell in less than three hours, with investments typically ranging from $15,000 to $40,000 per property.
You can create an account and then browse the available properties here.
Prominent investors like Dalio often emphasize the importance of diversification—and for good reason. Many traditional assets tend to move in tandem, especially during times of market stress.
This message feels especially relevant today. Nearly 40 percent 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 alternative assets come into play for many investors. These can include everything from real estate and precious metals to private equity and collectibles.
But there’s a store of value that routinely flies under the radar: It’s rare by design, coveted around the world, and often blocked 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 auction: 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. This 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 high-end artwork stocks 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 through their impressive portfolio of charts and choose how many shares you want to buy. Masterworks can handle all the details, making investing in high-end art both affordable and effortless.
The new deals sold out in minutes, but you can skip the waiting list here.
Note that past performance is not indicative of future returns. Investment involves risk. See Reg A disclosures at masterworks.com/cd.
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Dwarkesh Patel and Stripe (1); Fiscal data (2), (3); Committee on 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. Offered without warranty of any kind.
