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President Donald Trump has repeatedly touted the strength of the U.S. economy, recently insisting that \u201cour economy is booming (1).\u201d<\/p>\n
That statement didn\u2019t sit well with economist Peter Schiff.<\/p>\n
\u201cDonald Trump claims the U.S. has a booming economy. Well, maybe the stock market is booming \u2026 the real economy is going bust,\u201d Schiff said in a recent Instagram video (2). \u201cInflation continues to rise and every week we learn about more layoffs.\u201d<\/p>\n
The stock market has indeed had a strong run: The S&P 500 has climbed 16% year to date, while the tech-heavy Nasdaq has surged 20%.<\/p>\n
Schiff\u2019s concerns about inflation and job cuts reflect real pressures in the economy.<\/p>\n
The U.S. consumer price index showed a 3.0% annual increase in September, up from 2.3% in April \u2014 when Trump\u2019s sweeping tariffs were first announced. Meanwhile, layoff announcements continue to dominate headlines, with one report indicating that employers have announced 1,099,500 job cuts in the first 10 months of 2025 (3).<\/p>\n
Schiff calls Trump\u2019s boom a \u201cfiction\u201d and points to \u201cexploding deficits\u201d as one of the reasons behind the weakening economy.<\/p>\n
In fiscal year 2025, the U.S. government spent $7.01 trillion while taking in $5.23 trillion in revenue \u2014 resulting in a $1.78 trillion deficit. That shortfall adds to the national debt, which is now nearing $38.5 trillion.<\/p>\n
Schiff called the trajectory \u201ccompletely unsustainable.\u201d He argues that America\u2019s creditors see the same writing on the wall \u2014 and that it doesn\u2019t bode well for the dollar or the Americans who hold it.<\/p>\n
\u201cOur foreign creditors know this. That’s why they are divesting themselves of U.S. dollars and treasuries. Foreign central banks have been net sellers of treasuries. They are buying gold. They are replacing their dollars with gold. This is de-dollarization,\u201d he said. \u201cThis is the end of the dollar’s reign as the issuer of the world’s reserve currency and this has profound negative implications for the American standard of living.\u201d<\/p>\n
Schiff isn\u2019t the only one sounding the alarm. Ray Dalio, founder of the world\u2019s largest hedge fund, Bridgewater Associates, has warned<\/a> of a potential \u201cdebt death spiral\u201d \u2014 where the government must borrow simply to cover interest \u2014 and what he calls<\/a> \u201ca breaking down of the monetary order.\u201d<\/p>\n There are also signs of this shift already underway. In 2024, central banks added 1,045 tonnes of the precious metal to global reserves, marking the third consecutive year of net purchases exceeding 1,000 tonnes, according to the World Gold Council (4).<\/p>\n Unsustainable debt can have meaningful consequences for everyday Americans \u2014 and Schiff is far from alone in that view.<\/p>\n Dalio has noted that despite the size of the debt burden, the U.S. is unlikely to default outright. The more likely outcome? Currency depreciation.<\/p>\n \u201cThere won’t be a default \u2014 the central bank will come in and we’ll print the money and buy it,\u201d he said<\/a>. \u201cAnd that’s where there’s the depreciation of money.\u201d That depreciation is something Americans are already familiar with \u2014 it\u2019s been happening for decades. According to the Federal Reserve Bank of Minneapolis, $100 in 2025 has the same purchasing power as just $12.05 did in 1970 (5).<\/p>\n But Schiff believes this next phase could be more painful: \u201cEither you pivot now or get steamrolled,\u201d he wrote in the caption on his Instagram post (2).<\/p>\n And how should investors pivot?<\/p>\n Schiff, who is also involved with SchiffGold, argues the answer lies in \u201cstrategic assets.\u201d<\/p>\n \u201cStrategic assets that are hedges against inflation and a weak dollar have never been more important than they are right now,\u201d he said.<\/p>\n Here\u2019s a look at several such assets.<\/p>\n Read more: Warren Buffett used 8 solid, repeatable money rules to turn $9,800 into a $150B fortune. Start using them today to get rich (and stay rich)<\/a><\/p>\n When it comes to preserving wealth and fighting inflation, few assets have stood the test of time like gold.<\/p>\n Its appeal is simple: Unlike fiat currencies, the yellow metal can\u2019t be printed at will by central banks.<\/p>\n Gold is also considered the ultimate safe haven. It\u2019s not tied to any one country, currency or economy and in times of economic turmoil or geopolitical uncertainty, investors often flock to it \u2014 driving prices higher.<\/p>\n Schiff \u2014 a long-time advocate for the metal \u2014 has argued that gold\u2019s rise reflects not just investor demand but the underlying weakness of the U.S. dollar.<\/p>\n When gold traded around $2,600 roughly a year ago, he said: \u201cIf gold can go from $20 an ounce to $2,600 an ounce, it can go from $2,600 to $26,000, or even to $100,000 (6). There\u2019s no limit because, again, gold isn\u2019t changing \u2014 it\u2019s the value of the dollar that\u2019s decreasing.\u201d<\/p>\n Wall Street is taking note as well. Morgan Stanley chief investment officer Mike Wilson recently said, \u201cgold is now the anti-fragile asset to own, rather than Treasuries (7).\u201d<\/p>\n And JPMorgan CEO Jamie Dimon has also leaned into the theme, saying<\/a> that in this environment, gold could \u201ceasily\u201d rise to $10,000 an ounce.<\/p>\n One way to invest in gold that also provides significant tax advantages is to open a gold IRA with the help of Thor Metals<\/a>.<\/p>\n Gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account, which combines the tax advantages of an IRA with the protective benefits of investing in gold, making it an attractive option for those looking to potentially hedge their retirement funds against economic uncertainties.<\/p>\n To learn more, you can get a free information guide that includes details on how to get up to $20,000 in free metals<\/a> on qualifying purchases.<\/p>\n Beyond gold, real estate has long been another go-to asset for investors looking to protect \u2014 and steadily grow \u2014 their wealth during inflationary periods.<\/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 five years, the S&P Cotality Case-Shiller U.S. National Home Price NSA Index has jumped by 45%, reflecting strong demand and limited housing supply (8).<\/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\u2019t 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\u2019t need to buy a property outright \u2014 or deal with leaky faucets \u2014 to invest in real estate today. Crowdfunding platforms like Arrived<\/a> can 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, midnight maintenance calls 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\u2019d like to purchase and then sit back as you start receiving any positive rental income distributions<\/a> from your investment.<\/p>\n Another option is First National Realty Partners (FNRP)<\/a>, which allows accredited investors to diversify their portfolio through grocery-anchored commercial properties, without taking on the responsibilities of being a landlord.<\/p>\n With a minimum investment of $50,000, investors can own a share of properties leased by national brands like Whole Foods, Kroger and Walmart<\/a>, which provide essential goods to their communities. Thanks to triple net leases, accredited investors can invest in these properties without worrying as much about tenant costs cutting into their potential returns.<\/p>\n Simply answer a few questions \u2014 including how much you would like to invest \u2014 to start browsing their full list of available properties<\/a>.<\/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 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\u2019s one store of value that routinely flies under the radar: It\u2019s scarce by design, coveted worldwide and frequently locked away by institutions.<\/p>\n We\u2019re talking about post-war and contemporary art.<\/p>\n Think about it: The supply of these pieces is limited and many famous 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\u2019s New York, making it the most valuable collection in auction history (9).<\/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\u2019s 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\u2019d 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<\/a>.<\/p>\n We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines<\/a>.<\/p>\n PBS (1<\/a>); @peterschiff (2<\/a>); Challenger, Gray and Christmas (3<\/a>); World Gold Council (4<\/a>); Federal Reserve Bank of Minneapolis (5<\/a>); Yahoo! Finance (6<\/a>); Reuters (7<\/a>); S&P Global (8<\/a>); Christie\u2019s (9<\/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