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Peter Schiff Sounds the Alarm on America’s Coming Credit Collapse

EDITOR'S NOTES

Peter Schiff, that grizzled oracle of economic doom, is at it again—and this time, he might just be on the mark. In a September 2025 interview with Kitco News, Schiff warns that the next financial implosion won’t look anything like the 2008 mortgage crisis. Instead, it’ll be a crisis of confidence in U.S. government debt—a slow-motion implosion of the system’s supposed safest asset: the almighty Treasury bond.

Schiff’s thesis is simple and terrifying: the Fed is about to cut interest rates at the worst possible moment, inflation isn’t remotely defeated, and foreign creditors are starting to pull the plug on U.S. debt. And guess what? Schiff thinks this could mark the beginning of the end for the dollar’s global dominance. As always, he’s betting big on gold, silver, and the collapse of public trust in American institutions.

Let’s break down why this isn’t just another crank theory—and why you should care before the house burns down.

Derek Wolfe Sep 18, 25

The Smoke Before the Inferno

Peter Schiff’s warning is more than just another broken record of bearish predictions. Beneath the bombast lies a brutally logical conclusion: you can’t build an empire on infinite debt and expect the world to keep footing the bill.

The Fed Is Playing With Fire

Schiff argues that the Fed’s imminent rate cut is “catastrophic.” He’s not wrong. Inflation isn’t tamed—it’s been papered over by manipulated CPI numbers, supply chain voodoo, and short-term commodity deflation. But the core rot? It’s still there. Real wages are stagnant. The cost of essentials—housing, energy, healthcare—keeps climbing. The Fed is trapped: raise rates and crush the banks, or cut rates and torch the dollar. Either way, it’s a losing game.

Sovereign Credit Is the Final Domino

This time, the risk isn’t greedy homeowners or reckless bankers—it’s Uncle Sam himself. Schiff rightly calls this a “crisis of public credit.” The U.S. has racked up $36 trillion in debt and counting, with no path to fiscal sanity. The bond market is supposed to be the safe haven of the world. But what happens when the safe haven starts to look like a Ponzi scheme?

China’s dumping Treasuries. Japan is hesitant. Even domestic buyers are stretched thin. The only thing propping this house of cards up is blind faith—and Schiff is betting that faith is starting to crack.

Gold’s Quiet Revolution

Gold and silver are rising—yet retail investors are still asleep at the wheel. That’s not a bubble. That’s the sound of the smart money moving in early. Schiff sees silver as massively undervalued, and with good reason: it’s both a monetary metal and a critical industrial commodity. When the retail herd finally wakes up, it’ll be too late. You’ll be buying silver at $100 an ounce while Schiff’s riding off into the sunset.

Fed Independence Is a Joke

Let’s not kid ourselves about “Fed independence.” Schiff points to the brewing legal war over whether Trump (or any president) can fire Fed governors. That’s not just a constitutional sideshow—it’s a potential crack in the last firewall between politics and monetary policy. But honestly? That firewall’s been eroding for years. The Fed is already a puppet—whether of Wall Street, the White House, or both. Schiff’s just calling it what it is.

Final Thoughts

Peter Schiff may be extreme, but he’s not wrong to sound the alarm. The system’s cracking. The debt is unsustainable. The dollar’s reputation is bleeding out quietly in the background. And the next crisis—the big one—won’t be about banks or housing or tech stocks.

It’ll be about trust. And when that breaks, it’s game over.

CALL TO ACTION: Don’t wait for the headlines to confirm what you already feel in your gut. Download Seven Steps to Protect Yourself from Bank Failure by Bill Brocius today and start hedging your risk before it’s too late.