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Peter Schiff warns dollar is nearing a dangerous breaking point

Written by Liezl GambePublished dez. 24 2025Last Updated dez. 24 2025

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Economist and gold advocate Peter Schiff has warned that the US dollar is approaching a critical breaking point that could destabilise global markets and erode living standards.

Schiff said the fading perception of the dollar as a safe-haven asset risks triggering higher inflation and widespread financial disruption.

Writing on social media platform X on December 22, Schiff pointed to recent currency market movements as an early warning sign.

The dollar is now at a new 14-year low against the Swiss franc. It’s now less than 1% away from hitting a record low against the franc.

Peter Schiff said.

He argued that the weakening exchange rate reflects deeper structural issues facing the US economy.

This portends a broader dollar selloff yet to come, which means higher inflation, rising long-term interest rates, and a weaker U.S. economy.

He said.

Schiff claimed that investors are increasingly questioning the dollar’s long-standing role as a global refuge during periods of uncertainty.

The issue is that the dollar is not viewed as the safe haven anymore. Gold has taken its place.

Peter Schiff further said.

He also warned that rising debt levels and limited domestic savings make current interest rate conditions unsustainable.

According to Schiff, the erosion of the dollar’s reserve currency status could accelerate financial stress across bond markets.

On December 19, Schiff highlighted growing official-sector demand for precious metals as a signal of declining confidence.

Central banks are buying as they expect surging U.S. inflation to destroy the value of dollar reserves.

Peter Schiff said.

The economist has repeatedly argued that inflationary pressures will ultimately undermine consumer purchasing power.

In comments posted on December 16, Schiff expanded his warning to the broader economy and financial system.

The U.S. economy is teetering on the brink of the biggest economic crisis of our lifetimes.

Peter Schiff said.

He suggested that rising gold and silver prices could intensify pressure on the dollar and US Treasury markets.

Schiff warned that such developments could drive consumer prices, bond yields and unemployment sharply higher.

He concluded that a sustained dollar decline would significantly reduce living standards for American households.