American economist warns, ‘prepare for a historic economic collapse’

American economist Peter Schiff has renewed his warning that the global economy is approaching a major turning point.

According to the gold bug, his concerns stem from what he argues are long-standing imbalances in the U.S. financial system that are becoming increasingly difficult to sustain. 

His latest comments come as markets head toward the end of 2025 amid persistent concerns over debt, inflation, and the future role of the U.S. dollar.

In an X post on December 26, Schiff maintained that the dominance of the U.S. dollar as the world’s primary reserve currency is fading. 

https://x.com/PeterSchiff/status/2004364997401760040 ​​

According to his outlook, central banks are steadily shifting away from dollar-denominated assets and increasing their exposure to gold, a move he sees as a clear signal of eroding confidence in U.S. fiscal and monetary stability. 

He argued that this transition threatens to undermine the dollar’s value against other fiat currencies and remove what he describes as America’s long-standing advantage of borrowing cheaply and financing large deficits.

Schiff’s concerns on economy 

Overall, in his 2025 commentary, Schiff has tied dollar weakness to rising federal debt, chronic deficits, and higher debt-servicing costs, warning these pressures could push policymakers toward actions that further debase the currency and heighten inflation and financial instability rather than achieve a soft landing.

He has also dismissed optimism based on strong equities or selective data, arguing they mask deeper risks. 

In his view, rising precious-metal prices signal investors seeking protection from currency risk and systemic stress, not economic strength.

Alongside his bearish stance on the dollar, Schiff has reiterated his long-held skepticism toward cryptocurrencies, particularly Bitcoin (BTC), arguing that they have failed to prove themselves as reliable safe-haven assets during periods when gold has strengthened. 

He sees this divergence as reinforcing his belief that traditional stores of value will benefit most if confidence in fiat currencies continues to weaken.

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