Tesla CEO Elon Musk issued a stark warning on a recent podcast appearance: the United States is on a trajectory toward bankruptcy without a significant productivity boost driven by artificial intelligence and robotics. Speaking on the Dwarkesh Podcast on February 5, Musk stated, “We are 1,000% going to go bankrupt as a country and fail as a country, without AI and robots,” adding, “Nothing else will solve the national debt.”
Musk’s comments come as the U.S. National debt continues its upward climb, currently standing at at $38.56 trillion, according to Treasury Department data. The government is already operating at a deficit, having spent approximately $602 billion more than it has collected in fiscal year 2026 to date.
The core of Musk’s concern isn’t simply the size of the debt, but the escalating cost of servicing it. He highlighted that interest payments on the national debt now exceed the entire U.S. Military budget, which totaled $917 billion in fiscal year 2025. “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,” Musk said.
This trend is projected to worsen. The Committee for a Responsible Federal Budget forecasts that interest payments will surpass $1.5 trillion by 2032 and reach $1.8 trillion by 2035. These figures underscore the growing strain on the federal budget and the potential for a fiscal crisis.
Musk isn’t alone in sounding the alarm. Ray Dalio, founder of Bridgewater Associates, has warned of a “debt death spiral,” where the government is forced to borrow simply to cover interest payments. However, Dalio believes the U.S. Will avoid outright default, anticipating intervention from the Federal Reserve through monetary printing, which could lead to currency devaluation. Musk, in contrast, has previously warned that continued trends could render the dollar “worth nothing.” The Federal Reserve Bank of Minneapolis data illustrates a historical decline in the dollar’s purchasing power; $100 in 2025 has the equivalent buying power of just $12.06 in 1970.
Against this backdrop, investors are increasingly focused on strategies to protect their wealth. Dalio emphasizes diversification, particularly highlighting gold as a safe haven asset. He noted that “people don’t typically have an adequate amount of gold in their portfolio,” and that gold can be an effective diversifier during times of economic uncertainty.
JPMorgan CEO Jamie Dimon recently suggested gold could potentially reach $10,000 per ounce in the current environment. One avenue for investors to gain exposure to gold with tax advantages is through a gold IRA, such as those offered by Priority Gold.
Beyond gold, real estate is also being considered as a potential hedge against inflation. While rising home prices can present challenges for buyers, real estate offers the potential for both appreciation and rental income. Crowdfunding platforms like Arrived and Mogul are offering investors opportunities to participate in the real estate market with smaller capital outlays, providing fractional ownership in rental properties.
Arrived allows investors to purchase shares of rental homes for as little as $100, while Mogul focuses on blue-chip rental properties, offering investors monthly rental income and potential appreciation. Masterworks provides another alternative asset class, allowing investors to purchase shares of blue-chip artwork.
The confluence of rising debt, increasing interest rates, and economic uncertainty is prompting investors to explore a wider range of asset classes and strategies to preserve capital. While the long-term implications of these trends remain to be seen, the warnings from figures like Musk and Dalio underscore the importance of proactive financial planning and diversification.
