New York/Washington: Renowned US-based economist Peter Schiff, who correctly predicted the 2008 global financial crisis, has warned that the United States is heading toward a severe economic meltdown—one that could make the 2008 recession “look like child’s play.”
According to Schiff, the US dollar is on the path to collapse, and gold is likely to replace it as the preferred store of value. He argues that central banks across the world are gradually reducing their dependence on the dollar and significantly increasing their gold reserves.
Schiff’s warning comes amid heightened volatility in global precious metal markets. In 2025, gold prices surged by nearly 75%, while silver prices jumped by around 167%, reflecting growing investor anxiety and demand for safe-haven assets.
‘This crisis will be different from 2008’
Schiff said the upcoming crisis will differ fundamentally from the 2008 financial collapse. While the previous crisis spread across the global economy, the next one, he believes, will remain largely centred on the United States.
The 2008 crisis originated in the US housing market, when large numbers of borrowers defaulted on home loans. This triggered a collapse of major financial institutions, led to mass protests, and evolved into the worst global economic crisis since the Great Depression of the 1930s.
According to Schiff, the structural weaknesses in the US economy today are even deeper, driven by excessive debt, inflationary pressures and overreliance on the dollar’s reserve currency status.
‘Official data masks real weakness’
Schiff dismissed claims that the US economy is currently strong, arguing that official figures present a distorted picture.
“These numbers are misleading and heavily adjusted. They are significantly influenced by inflation,” he said, warning that inflation in the coming years could become even more severe than during the Biden administration.
He pointed to rising gold prices as a key signal of underlying economic stress. According to Schiff, central banks are buying gold to reduce exposure to the dollar while selling US Treasury securities. “Gold is showing the real picture of what is happening,” he said, adding that the crisis could unfold by the end of this year or sometime next year.
‘World doesn’t depend on the US’
Schiff also criticised US trade and economic policy, arguing that the American economy depends heavily on the rest of the world.
“We rely on other countries for goods we don’t produce. The world economy does not run because of us; our economy runs because of the world,” he said. He warned that America’s credit-driven economic model, sustained by the dollar’s reserve currency status, is deteriorating rapidly. “The dollar will collapse, and gold will take its place,” Schiff asserted.
White House rejects crisis narrative
The White House has strongly rejected Schiff’s warnings. A spokesperson for the White House said fears of an imminent collapse are exaggerated and contradicted by economic data.
According to Kush Desai, foreign holdings of US Treasuries have recently reached record levels. He said global business leaders are investing billions of dollars in the United States, supporting job creation and economic growth.
“Since President Donald Trump took office, fearmongers have repeatedly made such predictions,” the spokesperson said, adding that inflation has moderated and GDP growth has accelerated.
Economist known for 2008 forecast
Peter Schiff is the founder of Euro Pacific Asset Management and is widely known for accurately forecasting the 2008 financial crisis. He has long advocated precious metals, particularly gold, as a hedge against inflation and currency devaluation.
While Schiff’s views remain controversial, his past predictions continue to draw attention from investors and policymakers, especially amid rising global economic uncertainty.
