Economist Peter Schiff Warns of Biggest Bond Market Crash and ‘Unprecedented’ Financial Crisis

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Economist Peter Schiff has warned of an impending biggest bond market crash in U.S. history. “The coming economic and financial crisis will be unprecedented in size,” he added. “The stagflation nightmare will soon be a full-blown reality. Very few investors are actually prepared for this outcome,” he further cautioned.

Peter Schiff’s Latest Economic Warnings

Economist and gold bug Peter Schiff issued more warnings about the U.S. economy and the U.S. dollar in multiple posts on social media platform X over the past few days. He wrote on Wednesday:

We are still early in what will become the biggest bond market crash in U.S. history. Given that the U.S. economy is more levered now than at any time in history (governments, corporations, and individuals), the coming economic and financial crisis will be unprecedented in size.

“The financial crisis we are about to experience will be much worse than anything that happened in 2008, yet Wall Street and the Fed are even more clueless now than they were then,” he opined.

On Tuesday, the economist detailed: “It looks like the bond market is crashing in slow motion, and the yield curve will finally normalize after fifteen years of artificially low-interest rates.” He emphasized: “This will be catastrophic for the U.S., which has built an entire economy and government on a foundation of cheap money.” In another post, he predicted:

Eventually higher bond yields will bankrupt the federal government, and many state and local governments, as well as almost every bank in country, explode federal budget deficits, causing a depression and a financial crisis.

Moreover, Schiff cautioned: “If stock market investors think it’s bad now, wait until they see what happens when the dollar starts falling with bonds and gold starts rising with oil.” He warned: “The stagflation nightmare will soon be a full-blown reality. Very few investors are actually prepared for this outcome.”

Last week, Schiff warned of a tragic ending and the collapse of the U.S. dollar. He also recently urged investors to get out of the USD, noting that a “full-blown financial crisis” will hit the U.S. economy before the Federal Reserve reaches its inflation target.

The economist also cautioned on Monday: “Anyone moving from stocks into money markets because they prefer to earn 5% risk-free is mistaken.” He explained that “Inflation is a real risk,” emphasizing: “While dollars in a money market may not be lost, they’re likely to lose 10%-20% of their purchasing power every year until the end of the decade or longer.”

Schiff additionally noted that the 10-year U.S. Treasury has not yielded 5% since 2001. Highlighting that back then, the U.S. national debt was below $6 trillion, but it has now exceeded $33 trillion, he stressed: “When the yield hits 5% again later this year, the financial burden imposed on the government and the economy now will be far greater.”

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