🔴 BRACE YOURSELF! It All Falls Apart After The Midterms (here's why) | Peter Schiff

Summary

In an interview dated October 13, 2026, Peter Schiff argues that US policy is increasingly shaped by the approaching midterm elections. He criticizes President Trump’s announced diesel deal with Russia, saying it conflicts with earlier threats of tariffs on countries buying Russian energy. Schiff suspects the deal was intended to appeal to truck drivers and other voters facing high fuel prices. He also disputes Trump’s claim that Russia and Ukraine agreed to an energy-infrastructure truce, noting that both countries reportedly denied making such an agreement.

Midterms and government spending

The host cites prediction-market odds favoring Democrats to take both chambers of Congress. Schiff expects a Democratic Congress could still pass measures Trump would sign, potentially increasing spending and deficits. He focuses on Trump’s proposed $5,000 payments, which he says have shifted from a one-time promise to an annual benefit. Schiff warns that financing such payments through borrowing could worsen the risk of a currency or sovereign-debt crisis.

He also suggests a Democratic majority could use investigations as leverage over Trump, and alleges that people close to the president may have benefited financially from his actions.

Debt, bonds, and precious metals

Schiff mocks Trump’s warning that a Democratic victory would cause a depression like 1929, interpreting it as a way to deflect blame if the economy deteriorates. He says the US’s growing debt and weakening bond market are more serious underlying concerns.

In Schiff’s view, higher bond yields reflect inflation and diminished confidence in government finances—not a reason to be bearish on gold. Rising borrowing costs, he argues, would enlarge deficits, weaken the economy, and eventually pressure the Federal Reserve to cut rates and resume quantitative easing. He therefore remains bullish on gold and silver and presents their current prices as an opportunity to buy.

Other investments

Beyond precious metals, Schiff expresses optimism about energy, agriculture, industrial metals, and eventually emerging markets. He is more cautious about technology and AI valuations, noting that higher interest rates and energy costs could hurt companies that do not benefit directly from the AI boom.

He also criticizes the appointment of Judy Shelton as symbolic rather than substantive, and says China has been increasing its gold purchases.

Crypto and political risk

Schiff warns that Trump-linked market enthusiasm could fade. He cites the decline in Fannie Mae and Freddie Mac shares as an example of investors being left behind after an initial surge.

He is particularly negative on Bitcoin, arguing that its appeal has been boosted by political support that could disappear if Democrats gain power. He recommends that investors consider reducing crypto exposure and using gold or silver as an inflation hedge instead. He says renewed money creation could lift asset prices in nominal terms, but would likely send gold sharply higher.

Presenters and contributors: Danny (host); Peter Schiff (guest).