>> Continued From the Previous Page <<
He argues it is a flashing red signal that confidence in the U.S. dollar is eroding and that a sovereign debt crisis is forming beneath the surface.
“Gold and silver are warning about a bigger crisis that’s gonna hit either later this year or maybe next year,” Schiff explained.
According to Schiff, central banks around the world are quietly reducing their exposure to U.S. dollars and Treasury bonds while aggressively accumulating gold to strengthen their own currencies.
History gives Schiff credibility with skeptics
Schiff is not just another talking head predicting doom.
In 2006, years before the collapse of the subprime mortgage market, he warned that reckless lending and inflated housing prices would end badly. At the time, he was openly ridiculed on CNBC and labeled “Dr. Doom.”
Neil Cavuto famously mocked Schiff on air.
Then the housing market imploded almost exactly as Schiff had predicted.
That history explains why his latest warning is resonating with many conservatives who already worry about runaway spending and Federal Reserve policy.
The fiscal problems are real
Even critics of Schiff concede he is pointing to genuine vulnerabilities.
America’s national debt has now surged past $38 trillion, driven by years of unchecked spending and massive money creation during the COVID era.
The Federal Reserve injected trillions into the economy, while politicians in both parties approved spending packages with little regard for long-term consequences.
Schiff’s core argument, that government overspending ultimately destroys currency value, aligns with concerns long voiced by the Trump base.
At the same time, Schiff’s record is not perfect.
In 2012, he predicted gold would soar to $5,000 “within a few years.” Instead, prices peaked around $1,900 before falling sharply and not recovering until much later.
That mixed track record leaves many asking whether Schiff’s warnings are early or exaggerated.
Strong headline numbers complicate the narrative
For now, the broader economy is not behaving like it is on the edge of collapse.
Even critics of President Donald Trump have acknowledged recent economic strength.
GDP growth reached 4.3% in the third quarter, with the Atlanta Fed projecting 5.4% growth for the fourth quarter.
The stock market has surged, with the S&P 500 ending 2025 up nearly 18%.
Inflation has cooled significantly compared to the Biden years. Independent Women’s Forum senior policy analyst Carrie Sheffield highlighted the contrast.
“During President Trump’s second term, Bureau of Labor Statistics data show inflation averaged 2.7%. This compares to 5.0% during the Biden administration and just 1.9% during the first Trump administration,” Sheffield said.
Trump’s tariff strategy has also defied dire predictions, generating federal revenue without direct tax hikes. Real wages are climbing, energy independence is returning, and oil production has hit record levels as companies announce billions in new U.S. investments.
Washington isn’t panicking yet
Despite the debt load, global demand for dollars and Treasuries remains strong.
“Foreign holdings of U.S. Treasuries recently hit an all-time high while business leaders continue pouring trillions in investments to make and hire in America,” White House spokesperson Kush Desai told Fox News Digital.
From Washington’s perspective, the credit card still works.
Markets are calm, investors are optimistic, and the usual warning lights are not flashing.
The slow boil problem
Schiff’s warning may fall flat with Americans who feel conditions are improving.
But he argues that economic damage often unfolds slowly, then suddenly.
Debt, inflation risk, and monetary manipulation do not always show up immediately in market indexes or quarterly reports.
Younger Americans, in particular, are already feeling pressure from housing costs, debt, and stagnant long-term opportunity despite headline growth.
The danger, Schiff suggests, is waiting too long to act.
There is no perfect thermometer for markets. Timing is never exact. By the time panic becomes obvious, options disappear.
Whether Schiff is early again or finally right on schedule is impossible to know.
But history suggests that ignoring structural problems because the water still feels warm can be a costly mistake.
And when it turns, it turns fast.
