Schiff w/ Burack: Brace for 2008 2.0

Last week, Peter joined Jason Burack on the “Wall Street for Main Street” podcast to warn listeners that the U.S. economy is teetering on the edge of a significant financial crisis, potentially dwarfing the 2008 recession. During the discussion, Peter outlines how economic mismanagement, escalating inflation, and global de-dollarization are intensifying America’s fiscal woes, with gold emerging as the clearest winner in this turmoil. He also addresses misguided narratives around international trade relationships, monetary policy mistakes from the Federal Reserve, and new hostility from mainstream media due to his persistent advocacy of sound money principles.

Peter emphasizes that today’s economic environment eerily resembles the onset of the 2008 crisis—but this time, the stakes are far greater:

Yeah, I mean, actually it’s already started, and I’ve been saying now for several weeks that this reminds me more of 2008 just before the crisis than any other period of my life in that we are on the precipice of something much worse than 2008 by an order of magnitude. And nobody sees it coming, especially the Republicans. The Republicans were blinded to it because Bush was president, and as far as they were concerned, the economy was great. And they called me Dr. Doom for predicting this financial crisis. Well, the crisis we’re about to have is going to be much worse.

Addressing current trade tensions, specifically under the Trump administration, Peter points out the flawed understanding held by many leaders, likening the U.S. to a financially dependence in a relationship:

No, I mean, we may succeed in getting a divorce. That’s the problem. We’re the stay-at-home spouse that doesn’t have any earning capacity. We’ve been living off the rest of the world, and if we get divorced with no alimony and no child support, we’re screwed. Because Donald Trump doesn’t understand, and neither do his advisors. The world is not screwing us, the world is not taking advantage of us. It’s the other way around.

Peter notes that global players like China have already begun distancing themselves from U.S. assets, transitioning their reserves into gold and other currencies—a clear indicator that confidence in the dollar is waning rapidly:

And what China is already doing as they de-dollarize– that’s why gold was up over $90 today to a record high on top of the $100 it gained yesterday, and why gold stocks are now hitting 52-week highs. Not only is China buying gold, they’re buying euros. They’re selling treasuries, and they’re buying bunds. So the dollar had one of its worst days ever today. It dropped 2.25% against the euro and the yen, and it dropped almost 4% against the Swiss franc. In one day, as treasuries were collapsing and yields were spiking, as U.S. stocks were going down, there is a major exodus out of U.S. assets.

As these dynamics unfold, Peter warns that the United States is inevitably heading toward a severe financial crisis driven by soaring interest rates, defaults, and bankruptcies. Any intervention by the Federal Reserve will only temporarily mask the underlying rot before unleashing staggering inflation:

This is a major collapse. We’re going to have a financial crisis because rates are going to soar. We’re going to have defaults, bankruptcies, and it’s all happening now. It may not happen this week. It’s going to take weeks or months to really work through the system. Now the Fed is going to come in at some point and try to stop it all with rate cuts and QE, so that might buy us a few more weeks or a little bit, I don’t know, a couple more months. Who the hell knows? But that’s going to unleash massive inflation. It’s not going to work the way it worked after the 2008 financial crisis.

Finally, Peter highlights mainstream media’s reluctance to invite him back to discuss these issues, suggesting his contrarian analyses—and his accurate predictions over the years—are inconvenient for the narrative driven by big-money sponsors and popular cryptocurrency proponents:

Look, the chickens are coming home to roost, and I’m out there just trying to get the truth out there like I was in 2008, except I’m not on mainstream media much anymore because they stopped inviting me on. Once I proved I could predict a crisis, they didn’t want me on. You’d think they’d want me on with gold at $3,000 an ounce. They haven’t had me on in years. I think one of the reasons is the Bitcoin guys that buy all the ads probably said, ‘Look, we keep buying ads on your network but don’t let Peter Schiff come on,’ because they know I’m going to talk negatively about it.

Check out more of Peter’s analysis in his latest interview with Kitco News!