GOLD - Once The Dollar Breaks Down Peter Schiff Warns Of Run-Away Inflation: 'Investors Are Completely Unprepared' | Benzinga
Renowned economist Peter Schiff has warned about the potential for a major financial crisis due to “run-away inflation” and a weakening U.S. dollar. Schiff also predicts a significant surge in gold prices.
What Happened: Schiff took to social media platform X to voice his concerns, stating that Wall Street is in for a shock as inflation accelerates. He believes the situation could lead to a more severe financial crisis than the 2008 recession, with Treasury bonds potentially becoming the new subprime mortgages.
“Wall Street will be totally shocked by just how fast #inflation heats up. It will be an even bigger surprise than was the 2008 Financial Crisis. Worse, run-away inflation will usher in an even larger financial crisis than 2008, as Treasury bonds become the new subprime mortgages,” Schiff wrote.
Wall Street will be totally shocked by just how fast #inflation heats up. It will be an even bigger surprise than was the 2008 Financial Crisis. Worse, run-away inflation will usher in an even larger financial crisis than 2008, as Treasury bonds become the new subprime mortgages. — Peter Schiff (@PeterSchiff) May 28, 2024
Despite a rebound in consumer confidence in May, Schiff is skeptical about its sustainability. He highlights that year-ahead inflation expectations have spiked to 5.4%, the highest since December. Schiff contends that if consumers fully understood the potential for inflation to rise well beyond 5.4%, confidence levels would be much lower.