Gold closed trading at an all-time high of $5,179.90 per ounce, surging past the $5,100 mark just 24 hours earlier. The market is fueled by fears of a US government shutdown this Friday and the White House tariff war. Peter Schiff, Chief Market Strategist at Euro Pacific Asset Management, didn't hold back on Fox Business: the dollar is dying, and the real state of the economy is the worst in the world.
Dollar Loses Safe Haven Status
The US Dollar Index smashed through a four-year low, and against the Swiss franc, the American currency fell to an all-time minimum. Schiff explains it simply: global investors no longer believe Washington can manage its finances.
The situation is aggravated by a national debt of $38.6 T and a budget deficit no one intends to cut. Trump’s tariffs — those introduced in April and new threats targeting Canada and South Korea — are hitting Americans like a boomerang. Import prices are rising, accelerating inflation.
Economy Rating — F
Trump tries to sell the idea of the “hottest economy in the world,” but consumers see the opposite: the Consumer Confidence Index crashed to a 12-year low. Schiff gives the economy a solid F. In his view, official GDP and productivity statistics are distorted and fail to account for real inflation.
All this is reminiscent of 2007. Back then, authorities and the Fed ignored mortgage issues, calling them “contained.” Today, gold and silver are screaming the same warning: the system is on the brink, and a major crash is coming.
Schiff predicts a financial collapse that will make 2008 look trivial. The main difference is that this will not be a global crisis, but a purely American one. The rest of the world will likely even benefit. Central banks understand this and are actively swapping dollars for physical gold.
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