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Inflation will devalue your savings. Meanwhile, who knows how much these nickel coins will be worth in 5 years, as nickel prices will continue to rise. Copper prices will continue to rise. All prices will rise because the government will continue to create inflation. Politically, they have no other option.
They cannot accept reality. This is why I don't believe the Fed will raise rates next week. But we will see how gold reacts to high inflation rates, if any . Ironically, if the numbers are lower, gold will skyrocket. If the results turn out to be lower than expected, it will completely remove the question of raising rates, if they were even on the agenda, which I don't really believe in.
But if we get lower inflation numbers that are still bad, just not as terrible as expected, then we could see a big jump and the likelihood of a rate hike in September would drop because the Fed would get exactly the justification it was looking for. Peter Schiff warns that persistent inflation could devalue Treasury bonds while driving up prices for nickel, copper and oil.
According to Schiff, political pressure could prevent the Federal Reserve from aggressively raising interest rates. Investors are closely watching inflation data, as lower-than-expected readings could dampen expectations for a September rate hike and trigger a significant rise in gold prices. His forecast highlights inflation risks, commodity prices, Fed policy, Treasury bond investments, and opportunities in the gold market.
We will now show excerpts from an interview with Peter Schiff. Subscribe to -building opportunities. Stay one step ahead of financial changes and don't miss important market alerts. Trump threatened the Fed. He threatened the Fed, saying he would essentially destroy the entire US economy if the Fed did not lower rates , when the likelihood of them rising increased.
In fact, the probability that the Fed will raise rates next week is now about 60%. Although I still don't think they will. They must. In fact, they should raise rates by much more than the expected 25 basis points. But when Trump saw these jobs data , he not only took credit for the “great” numbers, but also for the “great” numbers that weren’t really great, even though they exceeded expectations.
And again, I think that when the situation becomes clearer , these data will be revised downwards . But I discussed this in my last podcast. But Trump immediately said, " Listen, the Fed has to lower rates, because we deserve low rates, lower them." And if you don't, we will stop trading. We will impose an embargo on all trade with all countries that have a trade surplus, which, of course, will harm us.
And in fact, everything Trump has threatened regarding trade, all his threats, sanctions , tariffs—the Americans are the ones who lose the most from this . This is one reason why threats don't work: Trump will hurt the US economy more than the economies of the countries he threatens. So the Fed knows that Trump is bluffing, that he is not going to see things through.
And I think the rest of the world knows that they can continue to do business with Iran, and there's nothing we can do about it because we have no leverage. If we impose an embargo, if we completely ban trade, it will only be worse. I'll come back to this because there's a lot I want to say about trade.
But let's get back to the war. So, war brings no results. We will lose this war. Even the administration now admits that there is no nuclear deal in question . So it's not even about the nuclear deal anymore. I do n't even know what's wrong. Perhaps this is an attempt to reopen the Strait of Hormuz, which was completely open before the war.
Our real goal is just to return to the status quo that existed before the war we should never have started. But now we won't do that. Because Iran is not going to surrender . Iran will control this strait. They will impose duties, collect a lot of money, and their influence in the region will grow. They will become a more powerful economic force than before we declared war on them.
And, apparently, this means that over time they will become a serious military threat. They may be less of a military threat now, but that doesn't mean they will continue to be , because they will have more money to build even more weapons as we improve their economic situation and push our enemies closer together.
China, you know, will have better relations with Russia. And many of these countries are now, you know, moving even further away from us. Look, look, we know that the Norwegian sovereign wealth fund announced a big sale. Well, I think about $60 billion in U.S. Treasury bonds they're going to dump. Of course, they will buy something else, but the world is gradually abandoning the US dollar.
We have alienated many of our friends, including Canada. Canada... Look what's happening there now. And I think this is a good time to move on to the topic of trade. Although, wait, before I do that, the escalation of the war is helping to drive up the prices of commodities like oil, copper, and agricultural products.
All of this means significantly higher consumer prices when voters go to the polls. Even a trip to the polls will cost much more than in 2024. Inflation will be the number one problem in 2026, just as it was the main problem in 2024. Only now the situation with inflation has changed to the opposite.
In 2024, everyone blamed the Democrats for inflation. That's why Trump was able to win. He won by promising to lower prices from day one. But prices in November 2026 will be much higher than in 2024. So who will voters blame for this? They will blame Trump , the man who promised to lower prices. And they will blame every Republican running on the ballot.
And what will be the solution? Democratic socialists. Why? They promise lower prices. Sure, they blame the high prices on greedy capitalists who rip you off, but they could also blame tariffs, and that would be true. And they can also blame the war. And where did it all come from ? From Trump. Trump started a war.
Trump imposed tariffs. And all the Republicans supported him. So , this is their mess, and they will be held accountable for it in the elections. Peter Schiff argues that political pressure on the Federal Reserve could exacerbate America's economic problems. He warns that tariffs , war, rising commodity prices and persistent inflation could boost consumer spending ahead of the 2026 election.
Schiff also highlights growing global concerns about the US dollar and Treasury debt . His analysis suggests that voters may increasingly blame the Trump administration and Republicans for higher prices, changing the political landscape. Let's get back to the interview. Copper prices will continue to rise.
All prices will continue to rise because the government will continue to create inflation, because politically they simply have no other option. They cannot accept reality. This is why I don't believe the Fed will raise rates next week. Right now, it seems to me, their strategy is to talk about raising rates and pretend they will do it, but never actually do it.
Like Trump: talking like you're going to do a bunch of things and then just not delivering on your promises. Saying you're going to bomb Iran into the Stone Age, and then coming up with a reason not to do it. So the Fed will always have a reason why they didn't raise rates this time. You know, some indicator came out that gave them hope, like inflation was heading towards 2%, but don't worry.
Don't worry. If it turns out to be too high, we are ready. We are ready to raise the stakes. Trust us, we will do it. We will do it. We're serious , right? We're going to raise the stakes and then, uh, not do it. Because the real issue is, what does the Fed stand to gain from a 25 basis point rate hike?
Nothing. They will gain nothing from this. This will have no effect on inflation, because it is not enough. The rate hike should be significantly greater than 25 basis points. And in fact, if the Fed does raise rates by 25 basis points, what will the market think? Oh, and that's all? No, they will start pricing in the next 25 basis point increase .
So, if the Fed raises rates by 25 basis points, they will have to do it again. They will find themselves in the same predicament as they are now, only rates will be even higher, which means bigger problems for stocks, real estate, and the federal debt. We already spend over $1.2 trillion a year on interest on the national debt.
And this amount will continue to grow. By the time Trump leaves office, it will be $2 trillion. And that's if rates stay at their current levels, just based on all the debt that needs to be refinanced and all the new debt that we're borrowing— over $3 trillion a year. So over the next two and a half years, that's another, well, 7-8 trillion.
That's why I said there's a possibility: if we go through a more serious recession in the second half of Trump's term, the national debt could reach $50 trillion before Trump leaves office. It's 40, you know, a little over 40. But even with those projections, I think the official estimates are about, um, 47 trillion by the time his term ends.
So we're going to have to pay interest on that extra 7 trillion that we don't pay interest on at all , plus we're going to have to pay additional interest on all those bills and bonds that are due by then that we're paying maybe 50 basis points on now because the money was borrowed when rates were very low; and now we have to refinance them when rates are much higher.
And if the Fed does raise interest rates, it will only deepen the problem. Let's see what happens next. We will get more inflation data on Thursday and Friday. On Thursday we will get the Producer Price Index (PPI), and on Friday we will get the Consumer Price Index (CPI). And these numbers may well turn out to be much higher than expected.
And if that happens, beware, because a real destruction could begin in the bond market, and then in the stock market. Let's see what happens with the precious metals market, because they usually go down. How gold fell by about $40 today. And I think the main reason was the pressure that was put on gold.
It fell $46, closed at 43.58, but the pressure was building due to weakness in the bond market and strength in the oil and copper markets, which, you know, increased the likelihood of a rate hike next week. But we will see how gold reacts to hot inflation data, if any . Paradoxically, if the numbers are lower, gold will skyrocket.
If the data is lower than expected, it will completely remove the question of raising rates, if it was even on the agenda, which I doubt. But if we get lower inflation numbers, which are still bad, just not as expected , we could see a sharp move and the chances of a rate hike in September would drop because the Fed would get exactly the justification it was looking for.
But if that's not an excuse, they'll come up with another one, because they don't want to raise the stakes. And Trump made that clear . That is, Trump is still demanding that the Fed lower rates and is even threatening to harm the economy if they don't . Peter Schiff warns that continued inflation, rising copper and oil prices, and the US's huge debt could create serious economic pressure.
He argues that the Federal Reserve may avoid a significant rate hike, despite threats of tougher action. Schiff expects higher interest costs to be a challenge for the stock, real estate and Treasury bond markets. Investors are also watching upcoming CPI and CPI data, which could trigger significant swings in bonds, gold, and stocks. news on gold, silver, cryptocurrency, . Mhm.
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