Peter Schiff Predicts Impending Commodity Boom and Double-Digit Inflation by 2025
Renowned economist and Bitcoin skeptic, Peter Schiff, has recently shared his view on the upcoming commodity boom and warned of potential double-digit inflation by 2025. Schiff believes that the world is on the verge of the largest commodity bull market since the 1970s, based on his analysis of the Commodity Research Bureau (CRB) index. He also suggests that Western central banks are mistakenly preparing for lower inflation, while Eastern central banks are buying gold in preparation for higher global inflation.
Peter Schiff’s Inflation Observations
The CRB index tracks the trading prices of 19 commodities, including gold, crude oil, coffee, and cattle. According to Schiff, this index has been steadily increasing since 2019, indicating a significant upward trend. He emphasizes that this could be the biggest commodity bull market since the 1970s. Additionally, Schiff predicts that inflation rates could reach double digits by 2025.
Peter Schiff’s Bitcoin Views
Schiff has also expressed his views on Bitcoin, stating that it has benefited big government and central banks. He believes that Bitcoin was approved as a decentralized finance asset to divert attention from gold, which he considers a threat to the fiat-based monetary system and the dominance of the US dollar.
Peter Schiff’s Twitter Clash over Bitcoin
In a recent Twitter clash, Schiff predicted a catastrophic crash for Bitcoin due to its increasing presence in ETFs. He argued that as more Bitcoin enters ETFs, its vulnerability increases. This sparked a debate with members of the crypto community who disagreed with his assessment. Despite criticism, Schiff maintained his position and highlighted the price decline of Bitcoin from its peak without significant outflows from ETFs.
The Potential Impact
If Schiff’s predictions come true, it would have significant implications for the global economy and the cryptocurrency market. Double-digit inflation, a phenomenon not seen in decades, would pose substantial challenges for economic policymakers and institutions. It remains to be seen how these potential developments will unfold in the coming years.
Amid growing economic uncertainties, American economist, staunch gold advocate, and prominent Bitcoin (BTC) skeptic, Peter Schiff, has shared his view that the most substantial impending commodity boom since the 1970s is coming and warned of potential double-digit inflation by 2025.
Specifically, Peter Schiff has sounded the alarm on an impending surge in commodities prices, pointing to a chart of the Commodity Research Bureau (CRB) index, predicting that the world is on the cusp of the largest commodity bull market since the inflationary era of the 1970s.
Indeed, the CRB index, which keeps track of 19 commodities trading, including gold, crude oil, coffee, cattle, and others, categorized into four groups – energy, agriculture, precious metals, and base/industrial metals, has been exhibiting a notable upward trend, as Schiff explained in an X post on March 21.
“This will likely be the biggest commodity bull market since the 1970s,” Schiff stressed, attaching a chart that showed the trajectory of the CRB index since 2019. Furthermore, he cautioned that by 2025, inflation rates could soar into the double digits, with the first digit possibly even exceeding a one.
In a more recent post, he voiced his opinion that the Western central banks are “mistakenly preparing for lower inflation,” whereas the Eastern central banks are preparing for “higher global inflation by buying gold, further explaining that:
“Ironically, by mistakenly preparing for lower inflation, the former ensures that the latter’s got it right.”
Elsewhere, in another X post, Schiff pointed out that Bitcoin was “the best thing that’s happened to big government and central banks,” due to gold being the “primary threat to the fiat-based monetary system,” and to the “hegemony” of the United States dollar.
It is for this reason that the prominent economist believes the US authorities approved the spot exchange-traded funds (ETFs) for the flagship decentralized finance (DeFi) asset, to begin with – to take away the attention from gold and decrease its purchasing.
As a reminder, Schiff has recently predicted a “catastrophic crash” for the maiden cryptocurrency, expressing his position that the more of it enters into the ETFs, the more vulnerable it becomes, leading to an intense debate with the members of the crypto community who begged to differ.
Shortly afterward, he doubled down, arguing that Bitcoin price “has fallen 15% from its peak price of just under $74K, without a single day of outflows from any of the new Bitcoin ETFs” except GBTC, suggesting it would have declined even further “without ETF buying,” and even more “when all Bitcoin ETFs have outflows.”
All things considered, should Schiff’s predictions materialize, it would mean a significant shift in the global economic landscape, as well as the crypto market, while the double-digit inflation, a phenomenon not witnessed in five decades, would pose substantial challenges for economic policymakers and institutions.
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