Economist warns coming financial crisis will make 2008 look like 'Sunday school picnic'

• Schiff predicts a U.S. dollar and sovereign debt crisis in late 2025 or 2026, claiming central banks are dumping treasuries and buying gold to back their currencies
• Counter-analysis notes inflation averaged 2.7% during Trump's second term versus 5.0% under Biden, with GDP growth reaching 4.4% in Q3 2025 and projected 5.4% in Q4
• Schiff argues the coming crisis will be uniquely American rather than global, as the world moves away from dollar reliance, while critics suggest his forecasts are exaggerated

Market Summary: Economist Warns of Imminent Financial Crisis

Key Warning:

Euro Pacific Asset Management Chief Economist Peter Schiff issued a stark warning that the U.S. is heading toward a financial crisis that will eclipse the 2008 recession, potentially arriving in late 2025 or 2026. He characterized the coming crisis as making 2008 "look like a Sunday school picnic."

Main Thesis:

Schiff argues that surging gold and silver prices signal three critical threats:

• Accelerating inflation
• Declining global confidence in the U.S. dollar
• An impending sovereign debt crisis

Key Data Points:

• Gold has reached all-time highs
• Inflation averaged 2.7% during Trump's second term, compared to 5.0% under Biden and 1.9% during Trump's first term
• U.S. GDP grew 4.4% in Q3 2025, with Atlanta Fed projecting 5.4% for Q4 2025

Market Mechanism:

Schiff notes central banks are actively divesting from U.S. Treasuries and accumulating gold to back their currencies, signaling erosion of the dollar's reserve currency status. He predicts no ceiling on gold prices as "there's no floor on the dollar."

Contrasting View:

Independent Women's Forum analyst Carrie Sheffield disputed Schiff's assessment, citing robust economic growth under current Trump policies and stronger domestic fundamentals. She suggested some commentators use "loud forecasts" for media attention that don't match economic reality.

Critical Difference:

Unlike 2008's global crisis, Schiff warns this event will be concentrated in America, with the rest of the world potentially benefiting from U.S. economic turbulence.

Investment Implication:

Precious metals positioning as crisis hedge rather than portfolio diversification tool.