{"id":167328,"date":"2026-07-27T04:11:18","date_gmt":"2026-07-27T04:11:18","guid":{"rendered":"https:\/\/www.europesays.com\/people\/167328\/"},"modified":"2026-07-27T04:11:18","modified_gmt":"2026-07-27T04:11:18","slug":"elon-musk-flags-that-america-is-1000-going-to-go-bankrupt-and-fail-as-a-country-heres-what-he-says-can-save-us-2","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/people\/167328\/","title":{"rendered":"Elon Musk flags that America is \u20181,000% going to go bankrupt\u2019 and \u2018fail as a country\u2019 \u2014 Here\u2019s what he says can save us"},"content":{"rendered":"

\"Elon<\/a> Photo by Brendan Smialowski \/ AFP via Getty Images <\/p>\n

Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below. <\/p>\n

Tesla CEO Elon Musk issued a dire warning for Americans. <\/p>\n

In a Feb. 5 appearance on the Dwarkesh Podcast, Musk said America is barreling toward bankruptcy as its national debt continues to climb. <\/p>\n

Must Read <\/p>\n

JPMorgan still sees gold hitting $5,000\/oz by Q4 \u2014 and savvy investors are protecting their wealth with a tax-advantaged Gold IRA. Learn more with a free guide<\/a> from Priority Gold <\/p>\n

“We are 1,000% going to go bankrupt as a country and fail as a country, without AI and robots,” he said (1). “Nothing else will solve the national debt.” <\/p>\n

According to the Treasury Department, U.S. national debt now stands at roughly $39.6 trillion \u2014 and it continues to grow as federal spending outpaces revenue (2). Through the first nine months of fiscal year 2026, the federal deficit has climbed to around $1.37 trillion (3). <\/p>\n

Without a productivity breakthrough from artificial intelligence and robotics, Musk painted a bleak picture of what lies ahead, saying the country is “actually totally screwed because the national debt is piling up like crazy.” <\/p>\n

He also warned that the cost of servicing that debt alone is becoming a heavy burden. <\/p>\n

“The interest payments on national debt exceed the military budget, which is a trillion dollars. So we have over a trillion dollars just in interest payments,” he said. <\/p>\n

How the Iran war has rapidly increased the national debt <\/p>\n

And those costs could rise further. The U.S. spent about $37.5 billion on the war in Iran so far, according to the Pentagon (4). And that cost could go much higher. <\/p>\n

Back in April, public policy expert Linda Bilmes estimated the war will cost Americans upwards of $1 trillion (5). <\/p>\n

“The result is that the interest costs alone will add billions of dollars to the total cost of this war,” Bilmes noted in an interview with the Harvard Kennedy School. “And unlike the upfront costs, these are costs we are explicitly passing on to the next generation.” <\/p>\n

These costs could climb as high as $1.5 trillion, given Donald Trump’s proposed 2027 defense budget. That’s the largest year-over-year jump in military spending since the end of World War II (6). <\/p>\n

According to the Committee for a Responsible Federal Budget, the plan could add about $5 trillion to defense spending through 2035. Once interest costs are factored in, that figure could push the national debt up by roughly $5.8 trillion (7). <\/p>\n

And then there’s the One Big Beautiful Bill Act (OBBBA). The Committee for a Responsible Federal Budget estimates OBBBA will add $4.2 trillion to the national debt by fiscal 2034, or $4.7 trillion through 2035 \u2014 if you take into account the bill’s dynamic effect on the economy (8). <\/p>\n

Read More: Millionaires under 43 hold only 25% of their wealth in stocks. Here’s where their money is actually going<\/a> <\/p>\n

Others are sounding the alarm <\/p>\n

Musk isn’t the only one concerned about America’s debt and the soaring interest costs tied to it. Ray Dalio, founder of the world’s largest hedge fund, Bridgewater Associates, has warned<\/a> that the U.S. is heading toward a “debt death spiral,” where the government must borrow simply to pay interest \u2014 a vicious cycle that feeds on itself. <\/p>\n

But unlike Musk, Dalio doesn’t foresee a formal bankruptcy. <\/p>\n

“There won’t be a default \u2014 the central bank will come in and we’ll print the money and buy it,” he said. “And that’s where there’s the depreciation of money.” <\/p>\n

JPMorgan CEO Jamie Dimon has also warned that rising government debt and deficits could eventually trigger “some kind of bond crisis” if policymakers fail to address the problem (9). <\/p>\n

In other words, the government may never technically run out of dollars \u2014 but those dollars can lose value fast. Musk has cautioned<\/a> in the past that if current trends continue, “the dollar’s going to be worth nothing.” <\/p>\n

That erosion in the value of the dollar is already visible. According to the Federal Reserve Bank of Minneapolis, $100 in 2026 has the same purchasing power as just $11.61 did in 1970 (10). <\/p>\n

The good news? Savvy investors have long found ways to protect their wealth \u2014 even when Washington’s fiscal math stops adding up. <\/p>\n

Why diversification shines in chaotic economic times <\/p>\n

To shock-proof your investments, Dalio emphasized the value of diversification \u2014 and highlighted one time-tested asset in particular. <\/p>\n

“People don’t have, typically, an adequate amount of gold in their portfolio,” he said. “When bad times come, gold is a very effective diversifier.” <\/p>\n

Gold has long been considered a go-to safe haven. It can’t be printed out of thin air like fiat money and because it’s not tied to any single currency or economy, investors often flock to it during periods of economic turmoil or geopolitical uncertainty, driving up its value. <\/p>\n

Despite a recent pullback, gold prices have climbed nearly 51% over the past 12 months (11). <\/p>\n

Gold’s rally has continued to draw attention from Wall Street. Dimon recently went as far as to say the metal could “easily go to $5,000 or $10,000 in environments like this,” adding that “this is one of the few times in my life it’s semi-rational to have some in your portfolio” (12). <\/p>\n

A gold IRA is one option for building up your retirement fund with an inflation-hedging asset. <\/p>\n

Opening a gold IRA with the help of Goldco<\/a> allows you to invest in gold and other precious metals in physical forms while also providing the significant tax advantages of an IRA. <\/p>\n

With a minimum purchase of $10,000, Goldco offers free shipping and access to a library of retirement resources. Plus, the company will match up to 10% of qualified purchases in free silver<\/a>. <\/p>\n

If you’re curious whether this is the right investment to diversify your portfolio, you can download your free gold and silver information guide today<\/a>. <\/p>\n

How real estate can help soften the blow <\/p>\n

Gold isn’t the only asset investors turn to during periods of inflation. Real estate has also proven to be a powerful hedge. <\/p>\n

When inflation rises, property values often increase as well, reflecting the higher costs of materials, labor and land. At the same time, rental income tends to go up, providing landlords with a revenue stream that adjusts for inflation. <\/p>\n

Over the past ten years, the S&P Cotality Case-Shiller U.S. National Home Price NSA Index has jumped by more than 88%, reflecting strong demand and limited housing supply (13). <\/p>\n

But the same housing boom that helped many existing homeowners build wealth has also made buying a home harder for millions of Americans. Home prices remain historically high<\/a> compared with incomes, while higher mortgage rates have pushed monthly payments sharply higher and forced some would-be buyers to wait. <\/p>\n

Of course, high home prices can make buying a home more challenging, especially with mortgage rates still elevated. And being a landlord isn’t exactly hands-off work \u2014 managing tenants, maintenance and repairs can quickly eat into your time (and returns). <\/p>\n

The good news? You don’t need to buy a property outright \u2014 or deal with leaky faucets \u2014 to invest in real estate today. Crowdfunding platforms like Arrived<\/a> offer an easier way to get exposure to this income-generating asset class. <\/p>\n

Backed by world-class investors like Jeff Bezos, Arrived allows you to invest in shares of rental homes with as little as $100<\/a>, all without the hassle of mowing lawns, fixing leaky faucets or handling difficult tenants. <\/p>\n

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’d like to purchase and then sit back as you start receiving any positive rental income distributions<\/a> from your investment. <\/p>\n

Even better, for a limited time, when you open an account and add $1,000 or more, Arrived will credit your account with a 1% match<\/a>. <\/p>\n

Mogul<\/a> is another option. It’s a real estate investment platform offering fractional ownership in blue-chip rental properties. This can give investors monthly rental income, real-time appreciation and tax benefits \u2014 without the need for a hefty down payment or 3 a.m. tenant calls. <\/p>\n

Founded by former Goldman Sachs real estate investors, the team hand-picks the top 1% of single-family rental homes nationwide<\/a> for you. In other words, you gain access to institutional-quality offerings for a fraction of the usual cost. <\/p>\n

Each property undergoes a rigorous vetting process, requiring a minimum 12% return even in downside scenarios. Across the board, the platform features an average annual IRR of 18.8%. Offerings often sell out in under three hours<\/a>, with investments typically ranging between $15,000 and $40,000 per property. <\/p>\n

You can sign up for an account and then browse available properties here<\/a>. <\/p>\n

Consider hedging with this overlooked alternative asset <\/p>\n

Prominent investors like Dalio often stress the importance of diversification \u2014 and for good reason. Many traditional assets tend to move in tandem, especially during periods of market stress. <\/p>\n

That message feels especially relevant today. <\/p>\n

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. <\/p>\n

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. <\/p>\n

But there’s one store of value that routinely flies under the radar: It’s scarce by design, coveted worldwide and frequently locked away by institutions. <\/p>\n

We’re talking about post-war and contemporary art \u2014 a category that has outpaced the S&P 500 with low correlation since 1995. <\/p>\n

It’s easy to see why art pieces often fetch new highs at auctions: The supply of the best works of art is limited and many of the most desirable pieces have already been snatched 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. <\/p>\n

Until recently, purchasing art has been a domain reserved for the ultra-wealthy \u2014 like in 2022 when a collection of art 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. <\/p>\n

Now, Masterworks \u2014 a platform for investing in shares of blue-chip artwork<\/a> by renowned artists, including Pablo Picasso, Jean-Michel Basquiat and Banksy \u2014 can help you get started with this asset class. It’s easy to use and, with 25 successful exits to date, Masterworks has distributed more than $65 million in total proceeds (including principal). <\/p>\n

Simply browse their impressive portfolio of paintings<\/a> and choose how many shares you’d like to buy. Masterworks can handle all the details<\/a>, making high-end art investments both accessible and effortless. <\/p>\n

New offerings have sold out in minutes, but you can skip their waitlist here<\/a>. <\/p>\n

Note that past performance is not indicative of future returns. Investing involves risk. See Reg A disclosures at masterworks.com\/cd (1). <\/p>\n

You May Also Like <\/p>\n

Join 250,000+ readers and get Moneywise’s best stories and exclusive interviews first \u2014 clear insights curated and delivered weekly. Subscribe now<\/a>. <\/p>\n

Article sources <\/p>\n

We rely only on vetted sources and credible third-party reporting. For details, see our <\/a>editorial ethics and guidelines<\/a>. <\/p>\n

Dwarkesh Patel and Stripe (1 (2)); Fiscal Data (2 (3)), (3 (4)); Reuters (4 (5)); Fortune (5 (6)); Reuters (6 (7)); Committee for a Responsible Federal Budget (7 (8)), (8 (9)); Fortune (9 (10)); Federal Reserve Bank of Minneapolis (10 (11)); APMEX (11 (12)); KitcoNews (12 (13)); S&P Global (13 (14)) <\/p>\n

Article Sources <\/p>\n

We rely only on vetted sources and credible third-party reporting. For details, see our ethics and guidelines<\/a>. <\/p>\n

Masterworks (1<\/a>); YouTube (2<\/a>); U.S. Department of the Treasury (3<\/a>), (4<\/a>); Reuters (5<\/a>), (7<\/a>); Fortune (6<\/a>), (10<\/a>); Center on Budget and Policy Priorities (8<\/a>), (9<\/a>); Federal Reserve Bank of Minneapolis (11<\/a>); APMEX (12<\/a>); Kitco (13<\/a>); S&P Global (14<\/a>) <\/p>\n

This article provides information only and should not be construed as advice. It is provided without warranty of any kind. <\/p>\n","protected":false},"excerpt":{"rendered":"Photo by Brendan Smialowski \/ AFP via Getty Images Moneywise and Yahoo Finance LLC may earn commission or…\n","protected":false},"author":2,"featured_media":167329,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[122],"tags":[202,7535,28364,28363,734,203,12798,76539,17573,74],"class_list":["post-167328","post","type-post","status-publish","format-standard","has-post-thumbnail","category-elon-musk","tag-elon-musk","tag-gold-prices","tag-interest-costs","tag-interest-payments","tag-jeff-bezos","tag-musk","tag-national-debt","tag-savvy-investors","tag-treasury-department","tag-trump"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@people\/116989990798873705","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/people\/wp-json\/wp\/v2\/posts\/167328","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/people\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/people\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/people\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/people\/wp-json\/wp\/v2\/comments?post=167328"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/people\/wp-json\/wp\/v2\/posts\/167328\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/people\/wp-json\/wp\/v2\/media\/167329"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/people\/wp-json\/wp\/v2\/media?parent=167328"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/people\/wp-json\/wp\/v2\/categories?post=167328"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/people\/wp-json\/wp\/v2\/tags?post=167328"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}