Peter Schiff, chairman of Euro Pacific Asset Management and a longtime gold advocate, gave a stern warning to VRIC Media host Darrell Thomas this week, stating that the U.S. economy is much more fragile than current market pricing suggests and that inflation will continue to rise, not fall. Schiff pointed to the year-over-year CPI reading of 3.8%, up from 3.3% the prior month, and stressed that the annualized April figure is running closer to 7.2%. With oil prices already higher than when those numbers were calculated, he sees no let-up in upward price pressure. He argued that the Fed still holds an easing bias while inflation worsens, and markets are pricing in rate cuts that will not materialize.
Balance Sheet Expansion and Debt Crisis
Schiff flagged the Fed's balance sheet expansion—over $200 billion so far in 2025—and noted that money supply is growing at a rate of at least 5%, incompatible with a 2% inflation target. He warned that if the 10-year yield decisively breaks above 4.5%, the Fed will accelerate bond purchases, leading to an even larger balance sheet and more inflation. Regarding U.S. debt, Schiff said the official figure of roughly $39.2 trillion understates the real problem. Including unfunded liabilities like Social Security, Medicare, and pension commitments, the total is closer to $150 trillion. He called the U.S. “completely insolvent” and noted foreign central banks have already drawn the same conclusion, which is why gold prices are rising.
Schiff described Social Security as a Ponzi scheme built on government IOUs, advising younger Americans to exclude it from any retirement planning. He also criticized tariff policy under Trump, calling it a direct cost to American consumers, and pointed out that GDP growth in Trump's first year was 2.1%, below every year of the Biden term.
Gold and Mining Stocks: The Ultimate Inflation Hedge
Schiff offered a simple comparison: in 1971, an ounce of gold cost $35; today it trades near $5,000. He believes the same forces driving that trend over five decades remain in place and projects gold could reach $20,000 over the next decade. For investors with higher risk tolerance, he recommends mining stocks, but insists physical gold and silver remain essential for everyone. He manages the Euro Pacific Gold Fund (EPGIX) and offers physical delivery and storage services through schiffgold.com under a program called T-Gold.
Blasting STRC: Saylor's 'Pure Ponzi'
Schiff has been targeting Strategy Inc. chairman Michael Saylor and the company's perpetual preferred stock, STRC, aggressively on social media throughout May 2026. STRC offers an annual yield of roughly 11.5%, marketed partly to income-seeking investors, including retirees. After Saylor suggested in a May interview at Consensus Miami that Strategy might sell bitcoin to cover STRC dividends, Schiff called the product “a pure Ponzi” on X. He warned that if Strategy ever has to choose between selling bitcoin or suspending STRC dividends, Saylor would sacrifice the dividend, crashing the stock. Schiff accused Saylor of violating SEC marketing rules by describing STRC as appropriate for retirees seeking low-risk wealth preservation. “Saylor's comments will help retirees who lose money win lawsuits against MSTR,” Schiff wrote. He also argued that STRC diverts demand away from bitcoin itself, since the 11.5% yield attracts capital that might otherwise go directly into BTC, while Strategy must pay that yield regardless of bitcoin's performance.
Schiff urged investors to sell MSTR stock before the inevitable crash, calling it a matter of time.