Economist Peter Schiff cautions against buying U.S. dollars or selling gold, citing rising Treasury yields as a result of the government’s failure to control the national debt and inflation. He notes the widening trade deficits, suggesting an unproductive economy will further weaken the dollar and increase prices.
Economist Peter Schiff Advises Against Buying US Dollars — Warns of USD Breakdown
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Schiff Warns Against Buying US Dollars
Economist and gold advocate Peter Schiff has warned investors against buying U.S. dollars or selling gold in a series of posts on social media platform X. Schiff wrote on Wednesday:
Investors shouldn’t buy dollars or sell gold because nominal Treasury yields are rising. Yields are only rising because the federal government has lost control of the national debt and the Fed has lost control of inflation.
The economist explained on Thursday: “The U.S. trade deficits in goods widened by 7.7% in Mar. to $99.4 billion in April, the largest monthly gap since Mar. 2022 and much larger than the $91.8 billion that had been expected. This evidences an unproductive economy that will cause the dollar to fall and prices to rise.”
Schiff continued: “So far the strength of the dollar relative to other fiat currencies has protected U.S. consumers from feeling the full sting of inflation. But once the dollar rolls over, that protection will be lost and inflation will take a much bigger bite out of consumer’s purchasing power.” He noted:
An explosive breakout in gold will likely accompany a breakdown in the U.S. dollar, as the soft-landing/falling inflation narrative falls apart. Most investors are completely unprepared for this outcome.
What do you think about the warnings and advice given by economist and gold advocate Peter Schiff? Let us know in the comments section below.
