Elon Musk warns America will ‘1,000%’ go bankrupt, ‘fail as a country’ due to crazy debt — protect your finances
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Tesla CEO Elon Musk made a serious warning for Americans.
In an appearance on February 5 Dwarkesh PodcastMusk said America is heading towards bankruptcy as its national debt continues to rise.
“Without artificial intelligence and robots, we will be 1000 percent bankrupt and fail as a country,” he said (1). “Nothing else can solve the national debt.”
According to the Treasury Department, the U.S. national debt currently stands at $38.56 trillion and continues to grow as federal spending outpaces revenues (2). In fiscal year 2026, the government has spent approximately $602 billion more than it has ever collected (3).
Without a productivity breakthrough in artificial intelligence and robotics, Musk painted a bleak picture of what lies ahead, saying the country is “actually completely screwed because the national debt is piling up like crazy.”
He also warned that the cost of servicing the debt alone had become a heavy burden.
“Interest payments on the national debt exceed the military budget, which is one trillion dollars. So we have over a trillion dollars in interest payments alone,” he said.
And these costs may increase further. A recent report from 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 in 2035 (4).
Musk isn’t the only one sounding the alarm about America’s debt and the resulting rising interest costs. Ray Dalio, founder of Bridgewater Associates, the world’s largest hedge fund warned The United States is headed for a “debt death spiral” where the government is forced to borrow money just to pay interest; This is a vicious cycle that feeds on itself.
However, unlike Musk, Dalio does not foresee a formal bankruptcy.
“There will be no default; the central bank will step in and we will print the money and buy it,” he said. “This is where money loses value.”
In other words, the government may never technically run out of dollars, but those dollars can lose value quickly. owned by Musk warned In the past, if current trends continued, “the dollar would have no value.”
The 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 $12.06 in 1970 (5).
Good news? Savvy investors have long found ways to preserve their wealth, even as Washington’s financial math ceases to apply.
Dalio emphasized the value of diversifying your investments to shock-proof them, specifically highlighting a time-tested asset.
“People often don’t have enough gold in their portfolios,” he said. “Gold is a very effective diversification tool when times are bad.”
Gold has long been considered a safe haven. It cannot be minted from thin air like fiat money, and because it is not tied to a single currency or economy, investors often flock to it during periods of economic turmoil or geopolitical uncertainty, increasing its value.
Despite the recent downturn, gold prices have increased by more than 70% in the last 12 months.
Other prominent voices see more potential. JPMorgan CEO Jamie Dimon recently in question It is stated that in this environment, gold can “easily” rise to $ 10,000 per ounce.
Gold IRAs allow investors to hold physical gold or gold-related assets in a retirement account, combining the tax advantages of an IRA with the protective benefits of an IRA. gold investmentThis makes it an option for those who want to help protect their retirement funds against economic uncertainty.
Gold is not the only asset investors turn to during inflationary periods. Real estate has also proven to be a powerful hedging tool.
When inflation rises, property values often increase; this reflects high material, labor and land costs. At the same time, rental income tends to increase, providing homeowners with an income stream that adjusts for inflation.
Over the past decade, the S&P Cotality Case-Shiller U.S. National Home Price NSA Index has increased more than 87%; This reflects strong demand and limited housing supply (6).
Of course, higher home prices can make buying a home more difficult, especially since mortgage interest rates are still high. And homeownership isn’t exactly hands-off; Managing tenants, maintenance and repairs can quickly eat up your time (and returns).
Good news? To invest in real estate today, you don’t need to buy a property outright or deal with leaky taps. Crowdfunding platforms reached We offer an easier way to enter this income-producing asset class.
Backed by world-class investors like Jeff Bezos, Arrived lets you: Invest in rental home stocks with as little as $100And without the hassle of mowing the lawn, fixing leaky faucets, or dealing with difficult tenants.
The process is simple: Browse through selected home options that have been reviewed for their value and income potential. Once you find a property you like, choose the number of shares you want to buy and sit back. Start receiving positive rental income distributions from your investment.
Mongolian is another option. This is a real estate investment platform partial ownership in premium rental propertiesProviding investors with monthly rental income, real-time appraisals and tax benefits without the need for a large down payment or searching for tenants at 3 in the morning.
Each property goes through a stringent review process that requires a minimum return of 12%, even in adverse scenarios. The overall platform has an average annual IRR of 18.8%. Offers usually sell out in under three hoursInvestments typically range from $15,000 to $40,000 per property.
Prominent investors like Dalio often emphasize the importance of diversity, and for good reason. Many traditional assets tend to move together, especially during periods of market stress.
This message seems especially relevant today. Almost 40% of the S&P 500’s weight is concentrated in the 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 is one store of value that has been overlooked: It is rare by design, coveted globally, and frequently locked up by institutions.
We’re talking about postwar and contemporary art, a category that has outperformed the S&P 500 with low correlation since 1995.
It’s easy to understand why works of art often reach new heights at auction: The best works of art are in limited supply, and many of the most desirable works 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, purchasing art was the preserve of the ultra-rich; Just like in 2022, an art collection owned by Microsoft co-founder Paul Allen was sold at Christie’s New York for $ 1.5 billion, making this collection the most valuable collection in the history of auction.
Now, Masterworks — a platform investing in shares of world-class works of art Works by famous artists such as Pablo Picasso, Jean-Michel Basquiat and Banksy can help you get started in this asset class. It’s easy to use, and through 25 successful exits to date, Masterworks has distributed more than $65 million in total proceeds (including principal).
Remember that past performance is not indicative of future returns. Investing involves risk. See Reg A disclosures at: masterworks.com/cd.
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Dwarkesh Patel and Ribbon (1); Financial 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 any warranty.
