Peter Schiff Warns of Inflationary Depression and Predicts Recession

Economist Peter Schiff's Warning

Economist Peter Schiff has issued a stark warning about the U.S. economy, predicting an inflationary depression and a more severe and prolonged recession. Schiff has highlighted the increasing national debt and federal budget deficits as key factors that will lead to a collapse in demand for U.S. dollars. He believes that once the dollar starts falling, Treasury yields will rise faster.

Concerns About the U.S. Economy

Schiff expressed his concerns about the U.S. economy and the U.S. dollar through a series of posts on the social media platform X. He stated that the financial and economic crisis that is already underway has been long overdue and could have been foreseen for years. However, he believes that the media, government, academia, and the Federal Reserve will claim that it was impossible to foresee.

According to Schiff, the reason interest rates will stay higher for longer is that inflation will also stay higher for longer. This, in turn, will lead to a deeper and longer-lasting recession. He describes the situation as not just stagflation, but an inflationary depression.

The Role of the Federal Reserve

Schiff criticized the remarks made by Federal Reserve Chair Jerome Powell regarding the economy. He argued that Powell wrongly blamed inflation on the pandemic, whereas Schiff believes that the Fed and the federal government are responsible for exacerbating the inflation problem during the pandemic. He specifically mentioned the large budget deficits and the printing of money to finance stimulus checks as factors contributing to the issue.

Schiff further criticized Powell's statement that the Fed doesn't consider fiscal policy when making decisions on monetary policy. He deems this admission as reckless and believes it will define Powell's failed legacy.

The Collapse of Demand for U.S. Dollars

Schiff highlighted the collapse of demand for U.S. dollars as a significant concern. Historically, U.S. dollars have been used to buy Treasuries. However, as the biggest buyers of Treasuries are now becoming sellers, and with the national debt and federal budget deficits skyrocketing, Schiff predicts that demand for dollars will also collapse. This collapse in demand will further contribute to the falling value of the dollar and cause Treasury yields to rise faster.

Predictions for the Future

Schiff believes that bond investors have lost confidence in the Fed's ability to bring inflation back down to 2%. He points out that 30-year Treasuries are now yielding 5.1%, but considers this rate insufficient to offset years of high inflation. He predicts that bond yields will soon normalize at higher rates across the curve, with short-term yields moving from 5.5% to 6% and long-term yields moving from 5% to 7%-8%. Given the substantial amount of debt, Schiff argues that the U.S. economy cannot afford a normal yield curve and predicts that quantitative easing (QE) will be implemented soon.

Schiff does not expect any further interest rate hikes, citing the ongoing war in the Middle East and the uncertainty it brings. He even suggests that there may be a need to cut rates. He has repeatedly warned about an impending bond market crash and an unprecedented financial crisis, expressing concerns about a "tragic ending" and the collapse of the U.S. dollar. According to Schiff, the day of reckoning is fast approaching.

Share Your Thoughts

What are your thoughts on economist Peter Schiff's warnings about the U.S. economy and the U.S. dollar? Feel free to share your opinions in the comments section below.

Frequently Asked Questions

Can a gold IRA earn any interest?

It depends on how much money you put into it if you have $100,000, then yes. If your assets are less than $100,000, it is no.

How much money you place in an IRA will determine how it earns interest.

If your annual retirement savings contributions exceed $100,000, you might want to open a brokerage account.

There you will earn more interest, but also be exposed to higher risk investments. You don't want to lose all of your money if the stock market crashes.

An IRA may be better for you if your annual income is less than $100,000. At least until the market recovers.

Can I store my gold IRA at home?

Investing in an online brokerage account is the best way to keep your money safe. Online brokerage accounts offer all the same investment options and you do not need any special licenses. Plus, there are no fees for investing.

A lot of online brokers offer tools for managing your portfolio. They will even let you download charts to see how your investments perform.

What are the three types?

There are three basic types of IRAs. Each type has its advantages and limitations. Each one will be discussed below.

Traditional Individual Retirement Account (IRA)

A traditional IRA allows you contribute pretax money to an account which can be used to defer taxes and earn interest. You can withdraw money from the account tax-free after you retire.

Roth IRA

Roth IRAs allow you after-tax dollars to be deposited into an account. Any earnings will grow tax-free. The account allows you to withdraw funds for retirement.


This is similar with a Roth IRA, but employees are required to make additional contributions. The additional contributions are subject to tax, but earnings accrue tax-deferred. When you leave your company, you may convert the entire amount into a Roth IRA.


  • To qualify as IRA allowable precious metals and be accepted by STRATA, the following minimum fineness requirements must be met: Gold must be 99.5% pure, silver must be 99.9% pure, and platinum and palladium must both be 99.95% pure. (
  • Silver must be 99.9% pure • (
  • Same tax rules as traditional IRA SEP IRA contributions in 2022 are limited to 25% of compensation or $66,000, whichever is less Before setting up a Silver IRA, understand the fees and IRS restrictions. (
  • If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal so that you would owe income tax on the item's value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (

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How To

How to Determine if a Gold IRA is Right for You

Individual Retirement account (IRA), is the most widely used type of retirement plan. IRAs may be obtained from financial planners or banks as well as mutual funds and banks. The IRS allows individuals to contribute up $5,000 annually without worrying about tax consequences. You can contribute this amount to any IRA regardless of your age. You can only put a certain amount into an IRA, but there are restrictions. For example, if your age is less than 591/2 years old, you can't contribute to a Roth IRA. For those who are younger than 50, contributions can only be made after you turn 70 1/2. Individuals who work for their employer could be eligible for matching employer contributions.

There are two main types: Roth and traditional IRAs. A traditional IRA lets you invest in stocks, bonds, real estate, and other investments, while a Roth IRA lets you invest only in after-tax dollars. Contributions to a Roth IRA aren't taxed when they come out, but withdrawals taken from a Roth IRA are taxed once again. Some people may choose to use both. Each type of IRA comes with its own pros and cons. Before you decide which type of IRA is right for you, what are the pros and cons? Below are three important things to keep your mind on:

Traditional IRA Pros

  • Each company has its own contribution options
  • Employer match possible
  • Save more than $5,000 per Person
  • Tax-deferred growth up to withdrawal
  • May have restrictions based on income level
  • Maximum annual contribution is $5,500 ($6,500 for married couples filing jointly).
  • Minimum investment is $1,000
  • You must start receiving mandatory distributions after age 70 1/2
  • Must be at least five years old to open an IRA
  • Cannot transfer assets between IRAs

Roth IRA pros

  • Contributions are exempt from taxes
  • Earnings grow tax-free
  • No minimum distribution required
  • Only stocks, bonds, mutual funds are available as investment options.
  • There is no maximum allowed contribution
  • There are no limitations on the ability to transfer assets between IRAs
  • To open an IRA, you must be 55 years old or older

You should be aware that not every company offers the same IRAs. Some companies offer the option of a Roth IRA, while others provide a choice between a Roth IRA and a traditional IRA. Others will give you the option to combine them. Noting that different types IRAs have different requirements, it's worth noting. A Roth IRA does not have a minimum investment requirement. Traditional IRAs require a minimum of $1,000.

The Bottom Line

When you are choosing an IRA, it is crucial to consider whether you will pay taxes now or in the future. If you're planning to retire in the next ten-years, a traditional IRA may be the best option. A Roth IRA may be a better choice for you. Either way, it's always a good idea to consult a professional about your retirement plans. Someone who understands the market will be able to recommend the best options.


By: Kevin Helms
Title: Peter Schiff Warns of Inflationary Depression and Predicts Recession
Sourced From:
Published Date: Sun, 22 Oct 2023 01:30:05 +0000

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