Peter Schiff: The Next Collapse Is Starting In The Bond Market

The U.S. bond market faces a catastrophic long-term bear market as yields climb from historical lows toward double digits, signaling a broader collapse in confidence. Current government interventions, including Treasury buybacks and Federal Reserve rate hikes, fail to address the underlying drivers of inflation and instead exacerbate the fiscal crisis. Rising interest rates threaten to compress corporate earnings and strain consumer spending, particularly as debt-laden entities struggle to refinance. Despite claims of economic strength, the reliance on inflationary policies and unsustainable deficit spending points toward a severe recession. Investors should pivot away from overvalued U.S. equities and bonds, favoring gold, silver, and international resource-based assets to hedge against the inevitable devaluation of the dollar. Peter Schiff, Chief Asset Strategist at Euro Pacific Asset Management, emphasizes that these systemic imbalances are reaching a breaking point, making a significant economic correction unavoidable.