①Peter Schiff, Chief Global Strategist at Pacific Capital, warned that the United States is on the verge of a financial crisis, with gold and silver price movements indicating that a larger-scale crisis may erupt later this year or next year; ②He stated, ‘We are facing another economic crisis. The severity of this crisis will surpass the financial crisis of 2008, which will seem like a picnic in comparison.’
Cailian Press, January 29 (Edited by Huang Junzhi) – In recent times, gold prices have been surging without any sign of slowing down. Against this backdrop, Peter Schiff, Chief Global Strategist at Euro Pacific Capital, issued a stern warning: the United States is about to experience a financial crisis, while other regions around the world will benefit.
Schiff noted that investors should not merely view this rally as a hedging tool but rather as a warning signal: inflation is intensifying, the dollar is losing global trust, and a major economic reckoning may be imminent.
He said in a recently aired program, ‘The price movements of gold and silver indicate that a larger crisis is approaching, which may occur later this year or next year. We are facing a dollar crisis and a sovereign debt crisis.’
‘Central banks are purchasing gold to support their national currencies. They are selling off dollars. They are also dumping government bonds.’ He continued, ‘We are facing another economic crisis. The severity of this crisis will exceed the financial crisis of 2008, which will look like child’s play in comparison.’
Carrie Sheffield, Senior Policy Analyst at the Independent Women’s Forum, countered that the prediction was ‘overly exaggerated’ and claimed that the main reason for gold reaching record highs was the federal government, as the dollar is ‘at its lowest level in history.’
She cited a series of data from the U.S. Bureau of Labor Statistics, pointing out that the inflation rate during President Trump’s administration was much lower than during Biden’s term, adding that ‘economic growth in 2025 will be stronger, and prices will be more stable.’
However, Schiff pointed out, ‘Unfortunately, these figures are inaccurate. They are severely biased and will be revised again, with a significant portion influenced by inflation. More unfortunately, the impact of inflation in the coming years will be even greater than during Biden’s presidency. The price movements of gold and silver illustrate this point. They serve as a warning.’
‘Just like in 2007, when the subprime mortgage market collapsed, I knew it signaled an even bigger crisis to come the following year. But mainstream investment circles, the Federal Reserve, and Ben Bernanke claimed that the subprime issue was under control. They didn’t understand the essence of the problem.’ He added.
Schiff emphasized, ‘We rely on this world. They provide us with goods we cannot produce ourselves. They supply us with funds that we lack through savings. Trump’s perspective completely distorts the facts.’
“The functioning of the global economy does not stem from us — but from the world. We have a dysfunctional, consumption-based credit economy that is built upon the status of the US dollar as the reserve currency, and now the world is shaking the foundations of the United States. The dollar is on the verge of collapse. The dollar will be replaced by gold,” he added.
Finally, Schiff also stated that there will be no limit to the price of gold because ‘the dollar has no floor.’
“The biggest difference between this crisis that we are about to face and the previous one is that this crisis will take place entirely within the United States. It will not spread to other parts of the world.” He further explained: “The 2008 financial crisis was a global event, whereas this U.S.-centered crisis will actually benefit the rest of the world.”