Peter Schiff warns US economy is ‘cooling fast’ with deficits set to surge — blasts Trump’s claim that America is booming. Who do you agree with?

“Trump claims the U.S. economy is booming. But a booming economy results in lower, not higher, deficits. Deficits rise when the economy is weak,” Schiff wrote in a recent post on X.

He pointed to the latest Treasury data, which showed that in July the federal government collected $338.492 billion in receipts and spent $629.635 billion — leaving a monthly budget deficit of $291.143 billion. That’s up 19.4% from July 2024’s $243.741 billion shortfall.

And Schiff sees little reason for optimism going forward.

“The truth is the U.S. economy is cooling fast, so deficits will keep rising and be much higher during the next official recession,” he warned.

He’s not alone. Mark Zandi, chief economist at Moody’s Analytics, recently cautioned that the U.S. economy “is on the precipice of recession,” citing flat consumer spending, employment and contracting construction and manufacturing are “set to fall.”

Recent employment data adds to those concerns. The Bureau of Labor Statistics initially reported 147,000 jobs added in June — later revising that to just 14,000. May’s figure was cut from 144,000 to 19,000, slashing a combined 258,000 jobs from the two-month tally.

The fiscal outlook is equally troubling. The Congressional Budget Office projects a $1.9 trillion federal deficit for fiscal 2025, which would push the national debt — already hovering around $37 trillion — even higher.

If you share Schiff’s concern, here’s a look at two simple ways to hedge against the storm.

A safe haven in shaky times

When economic clouds gather, gold has a way of shining through.

Unlike paper currency, the precious metal can’t be printed at will — and it isn’t tied to the fortunes of any single country or central bank. That makes it a popular refuge when inflation is high, deficits are swelling, or recession fears loom.

Over the past 12 months, gold prices have climbed more than 35%. Schiff sees more gains ahead — and has a sharp warning for those holding out for a dip.

“There’re people that are still waiting for a pullback — ‘Oh, I don’t want to buy $3,300 gold’ … Well, if you don’t want to buy $3,300 gold, be prepared to buy $3,600 gold, or $4,000 gold — because it’s more likely to go up than down,” he cautioned in a recent YouTube video.

He’s not alone in that outlook. Goldman Sachs and JPMorgan both forecast that gold could hit $4,000 an ounce by 2026.

A gold IRA is one option for building up your retirement fund with an inflation-hedging asset.

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

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.

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.

Real estate — a tangible income play

While gold is known for preserving wealth during turbulence, real estate offers something different — the ability to generate passive income, even when markets are choppy and employment data isn’t reassuring.

Few tangible assets work harder for investors. High-quality properties can produce rental income month after month, without requiring the sale of the underlying asset.

Investing legend Warren Buffett has often pointed to real estate as a prime example of a productive, income-generating asset. In 2022, Buffett remarked that if you offered him “1% of all the apartment houses in the country” for $25 billion, he would “write you a check.”

Why? Because no matter what’s happening in the broader economy, people still need a place to live and apartments can consistently produce rent money.