Peter Schiff blasts Trump’s claim that America's economy is booming. Here’s why he’s worried — and what to do

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President Donald Trump has been unwavering in his assessment of the U.S. economy, recently declaring it “booming” under his leadership. But some prominent voices aren’t buying it.

Economist Peter Schiff — who supported Trump in the 2024 presidential race — directly challenged that claim.

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“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.

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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.

Read more: Nervous about the stock market? Gain potential quarterly income through this $1B private real estate fund — even if you’re not a millionaire. Here’s how to get started with as little as $10

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

One way to invest in gold that also provides significant tax advantages is to open a gold IRA with the help of Thor Metals.

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.

To learn more, you can get a free information guide that includes details on how to get up to $20,000 in free metals on qualifying purchases.

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.

Of course, you don’t need billions — or even to buy an entire property — to benefit from real estate investing. Crowdfunding platforms like Arrived offer an easier way to get exposure to this income-generating asset class.

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

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 from your investment.

Another option is First National Realty Partners (FNRP), which allows accredited investors to diversify their portfolio through grocery-anchored commercial properties without taking on the responsibilities of being a landlord.

With a minimum investment of $50,000, investors can own a share of properties leased by national brands like Whole Foods, Kroger and Walmart, which provide essential goods to their communities. Thanks to Triple Net (NNN) leases, accredited investors are able to invest in these properties without worrying about tenant costs cutting into their potential returns.

Simply answer a few questions — including how much you would like to invest — to start browsing their full list of available properties.

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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

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