Prof G warns Trump is ‘bankrupting' America — how to save yourself from a ‘weakening’ US in 2026

"Bankruptcy is effectively you overestimate your strength and your ability to create value," Galloway said. "You spend or allocate resources against that expectation, and then eventually you find that your value and your leverage do not justify the resources spent."

The comments arrive as investors increasingly focus on America's growing fiscal pressures. The U.S. national debt stands at just below $39 trillion as of early May (2). That debt has now narrowly exceeded the size of the economy as of March 31, per Fortune (3).

The Congressional Budget Office now projects that interest payments will more than double from $1.0 trillion in FY 2026 to $2.1 trillion by FY 2036 (4).

'A weakening of your economic power'

Galloway's criticism centered partly on military spending and what he described as diminishing economic returns from America's global position.

"When you are spending a quarter of a trillion dollars on munitions and bombs that result in a weakening of your economic power, that's effectively what bankruptcy is," he said.

Currently, the total military budget request sits at $961.6 billion (5). The White House has also requested Congressional approval to $1.5 trillion in 2027 (6).

That said, while the United States is not facing literal sovereign bankruptcy, economists at the Peter G. Peterson Foundation have warned that rising debt servicing costs could eventually constrain future economic growth (7).

Additionally, analysts at the Council on Foreign Relations have raised concerns about the long-term trajectory of deficits if economic growth slows while entitlement and interest costs continue to climb (8).

That anxiety has already begun surfacing in financial markets. Rating agencies such as Fitch (9) and Moody's (10) have warned about America's deteriorating fiscal outlook, citing repeated debt ceiling standoffs and rising deficits. Last year, Moody's downgraded America's credit rating from Aaa to Aa1 (11).

How some investors are positioning defensively

Warnings about rising deficits and economic instability are reinforcing the importance of diversification rather than concentrating too heavily in the traditional 60/40 stock-and-bond portfolio.

One area drawing renewed interest is gold.

A shining safe haven

Gold prices surged to record highs in 2025 as central banks and investors alike seek assets historically viewed as stores of value amid inflation, geopolitical instability and fiscal uncertainty. After all, unlike fiat currency — like the U.S. dollar — gold can't be printed at will during a financial downturn.

And despite some pullbacks, gold seems to be on the rise again. As of May 13, the spot price was about $4,706.66 (12).

If you're curious about adding precious metals to your broader inflation-hedging strategy, a gold IRA from Goldco lets you hold physical gold and other metals while still getting the tax advantages of an IRA.

Goldco is one of the leading companies in the space, with a 4.8/5 rating on Trustpilot and an A+ from the Better Business Bureau. They also offer a guaranteed buyback program, meaning they'll repurchase your metals at the "highest price" according to market value if you ever decide to sell. Plus, the company will match up to 10% of qualified purchases in free silver.

If you want to explore whether precious metals could be a helpful hedge for your portfolio, you can download your free gold and silver information guide today.

But some investors are also looking beyond precious metals toward income-producing real estate investments that can offer valuable diversification away from public equity markets.

A time-tested play

Real estate has played a major role internationally in preserving wealth during periods of inflation and market volatility (13).

While high-net-worth investors often allocate nearly 25% of their portfolios to real estate, the barriers to entry for rental properties — like high down payments and the headaches of property management — often keep individual investors on the sidelines.

That's where mogul comes in. This real estate investment platform offers fractional ownership in blue-chip rental properties, allowing you to earn monthly rental income and benefit from appreciation and tax advantages — all without a hefty down payment or 3 a.m. tenant calls.

Founded by former Goldman Sachs real estate specialists, the mogul team handpicks institutional-quality, single-family rental homes nationwide. This gives you the opportunity to invest in top-tier offerings for a fraction of the usual cost.

Every property must pass a rigorous vetting process, targeting a minimum 12% return even in downside scenarios. The platform boasts an average annual IRR of 18.8% and cash-on-cash yields averaging between 10% to 12% annually. Because of this demand, offerings often sell out within under three hours, with typical investments ranging from $15,000 to $40,000 per property.

Your investment is secured by real assets; each property is held in a standalone Propco LLC, meaning you own the property itself rather than the platform. Furthermore, blockchain-based fractionalization provides a permanent, verifiable record of your stake.

Getting started is simple. Just sign up for an account to browse available properties. Once your information is verified, you can begin building your real estate portfolio like a mogul in just a few clicks.

An industrial backbone

Class B is a type of real estate asset class that tends to perform steadily through market cycles, supported by a broad tenant base and sustained demand for quality, affordable space.

In times of volatility, they often benefit from renters "trading down" from higher-cost options, while limited new supply keeps vacancies in check. Low tenant turnover and long leases can also lead to consistent net operating income (NOI) and stable, robust cash flow for Limited Partner (LP) investors.

Accredited investors can now tap into this opportunity through platforms such as Lightstone DIRECT, which gives accredited investors access to single-asset multifamily and industrial deals.

Lightstone DIRECT lets individual investors tap into the institutional approach of Lightstone, one of the largest privately held real estate investment firms in the U.S., with $12 billion in assets under management.

The platform eliminates middlemen and the extra layers of fees that can add up in traditional real estate investing, usually known as "fee stacking." This streamlined approach provides more direct access to institutional-quality deals.

Over nearly four decades, Lightstone has delivered strong risk-adjusted performance — including a 27.6% historical net IRR and a 2.54x historical net equity multiple on realized investments since 2004.

Each opportunity requires a $100,000 minimum and undergoes a rigorous review by Lightstone's principals, including founder David Lichtenstein.