Bitcoin REFUSES To Crash - Even Peter Schiff Admits He’s Surprised

Peter Schiff says the administration’s shift from prioritizing debt reduction to “growing out” of the problem was contradicted by the Big Beautiful Bill, which he says increased spending. He warns that higher rates could make federal debt harder to service; in his scenario, $50 trillion of debt at 8% would generate $4 trillion in annual interest, while borrowing to cover costs could push deficits to $6 trillion.

The speakers question whether hyperscalers and AI companies can finance an anticipated buildout requiring tens of trillions of dollars when, in their view, the economy lacks the savings to fund it and borrowing costs are higher. They also argue that spending those resources on AI means giving up other uses, while Schiff calls the hope that AI-driven growth will solve the debt problem a fantasy and says taxing AI companies is not yet a ready funding source because they are spending rather than making profits.

Peter Schiff argues that headline labor and inflation measures can mislead: he says at least 80% of jobs-data revisions are downward, changes to unemployment calculations make current readings incomparable with past decades, and CPI methodology has weakened comparisons with earlier readings. He also says PCE remains above the Fed’s 2% target and attributes the 2021–22 price increases to 2020 policies and Fed actions, with inflation following monetary expansion with a lag.

Schiff says rising rates are increasing mortgage costs and hurting housing, while homeowners have lost the easy refinancing option to extract equity or lower payments and face rising maintenance and insurance costs. He argues that construction costs and mortgage rates near 8% are making new homes unaffordable for most Americans, predicts rates could reach 9% by year-end, and warns that a crash in existing home prices could lead to defaults and a financial crisis.