Economist Calls Out Trump’s Lies – then Issues Ominous Warning: ‘Collapse Will Follow’
Economist Peter Schiff has sharply criticized President Donald Trump’s recent claims about falling prices and the benefits of tariffs, calling them “backwards” and warning that the administration’s policies could lead to an economic collapse.
Schiff, a financial commentator and radio personality known for his warnings about America’s affordability crisis, argued in a series of social media posts over the weekend that Trump’s approach to trade and debt is jeopardizing the dollar’s status as the world’s reserve currency—with dire consequences ahead.
Schiff’s remarks come in response to Trump’s December Truth Social post, where the president attacked Schiff for his appearance on Fox News and boasted about declining gasoline prices and overall economic strength.
Trump wrote: “Why would Fox and Friends Weekend (of all things?) put on a ‘Stockbroker’ named Peter Schiff, a Trump hating loser who has already proven to be wrong. Either the show made a mistake, or it is heading in a different direction. He thinks prices are going up when, in fact, they are coming substantially down. Gasoline hit $1.99 a gallon yesterday, in certain states, and is down BIG since Biden. Other prices are almost all down. Biden caused the AFFORDABILITY CRISIS, I’M FIXING IT, along with everything else!”
Schiff fired back directly: “Trump has it backwards. The U.S. doesn’t subsidize the world; the world subsidizes the U.S. The dollar’s reserve-currency status allows us to live beyond our means. Soaring debt, tariffs, and military threats jeopardize that status. When it’s lost, economic collapse will follow.”
In a follow-up post, Schiff highlighted recent Federal Reserve actions and market signals as harbingers of trouble: “Since mid-Sept. 2025, the Fed has cut interest rates three times. But despite a 75-basis-point reduction in short-term rates, 10-year Treasury yields have risen 20 basis points and are poised to spike sharply higher. $4,600 gold and $90 silver confirm a debt crisis is coming.”
When a user asked Schiff to predict the “worst economic policies” the Trump administration might roll out next, he responded bluntly: “Hard to say which one will come next, but it’s pretty clear from his track record that any future economic policy he rolls out will be bad.”
Trending: Women Now Use Dating Apps to ‘Trap and Publicly Expose ICE Goons’
Tariffs and the Dollar’s Vulnerability
Schiff’s analysis centers on Trump’s tariff policies, which the president has touted as a tool to bring manufacturing jobs back to the U.S. and generate revenue. Trump has imposed or threatened tariffs on imports from China, Mexico, and other trading partners, claiming they protect American workers and fund domestic programs.
However, Schiff argues this view is fundamentally flawed. He contends that the U.S. dollar’s role as the global reserve currency—allowing cheap borrowing and trade deficits—has subsidized American consumption for decades.
Policies like high tariffs, escalating debt, and military posturing, Schiff warns, could erode international confidence in the dollar, leading to a collapse in its value, higher inflation, and economic turmoil.
Schiff has long been a proponent of gold as a hedge against fiat currency debasement, and his reference to soaring gold and silver prices underscores his belief in an impending debt crisis.
Trump’s Economic Narrative
Trump has repeatedly claimed his policies are driving down prices and strengthening the economy. In his December post, he highlighted falling gasoline prices and attributed the “affordability crisis” to the Biden administration.
The White House has echoed this, pointing to tariff revenues funding initiatives like military dividends and infrastructure.
Critics, including Schiff, argue that tariffs raise costs for consumers and businesses, contributing to inflation rather than alleviating it. Recent data shows mixed results: gasoline prices have dipped in some areas, but overall consumer prices remain elevated, with food and housing costs continuing to strain household budgets.
The administration has not directly responded to Schiff’s latest comments, but Trump has previously dismissed him as a “Trump hating loser” whose predictions have been wrong.
Trump has it backwards. The U.S. doesn’t subsidize the world; the world subsidizes the U.S. The dollar’s reserve-currency status allows us to live beyond our means. Soaring debt, tariffs, and military threats jeopardize that status. When it’s lost, economic collapse will follow.
— Peter Schiff (@PeterSchiff) January 17, 2026
Schiff’s warnings align with concerns from other economists about U.S. debt levels—now exceeding $35 trillion and the potential long-term fallout from trade wars. The Federal Reserve’s recent rate cuts aim to stimulate growth, but rising long-term Treasury yields suggest market skepticism about fiscal sustainability.
A user’s question about future Trump policies prompted Schiff’s grim assessment, reflecting broader unease among fiscal conservatives about the administration’s spending and protectionist approach.
TOP STORIES
- Trump Faces Voter Exodus as New Supporters Abandon Ship One Year Into Second Term
- ‘We’ll Sue Your A– Off’: Leaked Audio Exposes Karoline Leavitt Threatening CBS – and Relaying Trump’s Orders
- RFK Jr. Reveals Trump Is ‘Pumping Himself Full of Poison All Day Long’
Trump’s economic record—boasted as “the strongest in history” will face increasing scrutiny as midterm elections approach.
For Schiff and like-minded critics, the path ahead is one of inevitable correction, with tariffs and debt as accelerants. Whether his prediction of collapse materializes remains to be seen, but his voice adds to a growing chorus questioning the sustainability of the current trajectory.
Discover more from STITCH SNITCHES
Subscribe to get the latest posts sent to your email.