Peter Schiff Warns of Dollar Trouble Despite Market Optimism
Global markets rose after news of progress in U.S.-China trade talks, giving investors hope that tensions between the two countries might ease. Stocks and the U.S. dollar both strengthened as a result.
However, economist and gold supporter Peter Schiff warned that this optimism hides deeper problems in the U.S. economy. He said that rising budget deficits, high inflation, and a global move away from the dollar are weakening America’s long-term financial stability.
On October 27, Schiff wrote on X (formerly Twitter):
“Gold is down this morning as investors react to news of a trade deal with China that will move us closer to where we were before Trump escalated the war.”
He added that the deal won’t fix the main problems — soaring deficits, interest rate cuts, inflation, or the ongoing shift away from the dollar — and predicted that gold prices will keep rising in the long run.
Schiff explained that U.S. policymakers are using positive trade headlines to distract from the country’s weak economic fundamentals and the declining trust in U.S. financial policies.
A day earlier, on October 26, he also commented:
“Stock futures and bitcoin are up, and gold is down, on news that tariffs on Chinese goods will be delayed as the U.S. and China move closer to another meaningless trade deal that Trump can claim as a win.”
Schiff argued that this market optimism is misguided. He believes that as long as the U.S. continues heavy deficit spending and fails to control inflation, the dollar will keep losing its global dominance — no matter how strong the market looks in the short term.
