Schiff w/ Millman: Gold Will Replace the Dollar

Last week, Peter joined Everett Millman on the Verified Macro Report to lay out a clear, uncompromising case against the last several decades of monetary policy and to explain why he sees gold and silver—not fiat or most cryptocurrencies—as the natural refuge for investors. He ties the Fed’s policy errors to rising long-term rates, a deeper inflation problem ahead, and a potential reconfiguration of the global reserve system in favor of gold.

He opens by tracing the Fed’s mistakes in rate policy and slow responses to crises, arguing that the central bank’s pattern of cutting too deep and raising too late has left the economy vulnerable and the dollar weakened:

I think the rate cuts are a mistake. I mean, the Fed has done nothing but make mistakes. They never should have lowered interest rates to zero at any point. They never should have slashed them to 1% when the dot com bubble burst, and they shouldn’t have gone to zero when the housing bubble burst, and they shouldn’t have gone to zero during COVID. And they raised rates much too slowly.

From that foundation, Peter turns to what he sees as the inevitable reallocation of reserves: central banks and private investors moving away from the dollar and into gold and silver as reliable stores of value and portfolio hedges: