Key Takeaways:
Peter Schiff warns that the Fed’s balance sheet expanded by over $200 billion in 2025, signaling a return to quantitative easing.Schiff calls STRC a “classic centralized Ponzi,” warning retirees could lose principal on Strategy’s 11.5% preferred stock.With 30-year Treasury yields potentially hitting 8%, Schiff sees gold, silver, and mining stocks as the primary hedge through 2026.“The markets are really set up for a major disappointment,” Schiff said. He warned that 30-year Treasury yields could break above 8%, a level that would inflict serious damage on U.S. government finances given the current debt load. The 20-year high sits around 5.1%. Getting to a 30-year high, he said, is a different situation entirely.
Schiff described Social Security as a Ponzi scheme structured around government IOUs. The trust fund, he said, holds nothing but U.S. Treasury bonds, meaning the government would simply have to sell new bonds when it runs out of old ones. He advised younger Americans to exclude Social Security from any retirement planning. For people in their 20s or 30s, he said, the payments, if they come at all, will not carry enough purchasing power to matter.
He also addressed tariff policy, calling it a direct cost to American consumers. Trump’s acknowledgment that lowering beef tariffs would reduce beef prices, Schiff said, is an admission that tariffs raise prices and are paid by Americans, not foreign exporters. He said federal deficits under the current administration are larger than under Biden, and that GDP growth in Trump’s first year came in at 2.1%, below every year of the Biden term.
Schiff Calls STRC a ‘Pure Ponzi’
