Peter Schiff

Trump is hitting Americans hard with 50% tariffs on Canadian autos, trucks, auto parts and steel. Americans purchase a lot of those goods from Canada, and those goods will now be vastly more expensive for Americans to buy, worsening the government-created cost of living crisis.

Bessent’s plan to use the TGA to fund Treasury buybacks makes possible exactly what I warned would happen. This reckless plan will substantially shorten the average maturity of the national debt, increasing our exposure to rising short-term rates and making it even harder for the Fed to hike rates without exploding federal interest expense and budget deficits. It’s a recipe for massive QE and runaway inflation. Got gold?

Bitcoin pumpers are trying to hitch Bitcoin to the AI wagon, hoping investors will see it as part of the AI trade. They have it backwards. AI isn’t bullish for Bitcoin; it’s a threat to it. AI competes with Bitcoin for speculative capital, electricity, and data-center infrastructure. Plus, as AI becomes more powerful, it could discover vulnerabilities in Bitcoin’s code, cryptography, wallets, or network that humans have missed. Bitcoin’s security and protocol-enforced scarcity ultimately depend on software remaining secure.

https://t.co/T3Kw5poK1Q

Set a reminder for my upcoming Space! https://t.co/glqn26jk6e having trouble starting the spaces

If you think gold prices and Treasury yields are rising fast now, wait until the dollar starts to drop sharply against its major fiat currency counterparts. Dollar weakness is the missing piece that will complete the puzzle necessary for a full-blown U.S. sovereign debt crisis.

Once again gold and Treasury yields are rising together. This is proof that investors don't expect a hawkish Fed to successfully lower inflation, but a dovish Fed to allow inflation to run away. As a result investors and foreign governments are selling Treasuries and buying gold.

Gold is trading above $4,600. So far, over the first three weeks of August, gold is up 15%. This doesn't happen with a hawkish Fed determined to do whatever it takes to lower inflation. It happens when investors realize the Fed is bluffing and intends to let inflation run away.

It's amazing how ignorant Trump is of basic economics. If the free market set interest rates instead of the Fed, the U.S. would pay much higher rates than it does today. Switzerland has lower interest rates than the U.S. because the Swiss save and their government barely borrows.

Treasury yields aren't back to their highs today despite the Treasury's attempt to lower yields, but because of it. By sounding the alarm, the government has awakened sleeping investors to risk they had previously ignored. Plus, it's smart to sell whatever the government buys.

Gold hitting $4,600, silver near $70, oil over $87, and Bitcoin's earlier spike above $79K show the Fed has lost all credibility on its commitment to returning inflation to 2%. Treasury made it clear the Fed will choose inflation, so investors are choosing their preferred hedge.

This morning Trump proudly announced a deal to lower beef prices by reducing quotas and tariffs on imported beef. But that's also an admission that tariffs increased prices paid by American consumers. If removing tariffs lowers prices, then imposing them must have raised prices.

Inflation-sensitive markets are ripping because the Trump Administration pulled the rug out from under Warsh. No matter what he says about fighting inflation, investors now realize the Fed won't undermine Treasury by actually doing anything about it. Commodities now, CPI later.

Now that the Trump Administration has panicked by announcing a Treasury bailout, investors who hadn't yet realized there was a problem will get the message and start selling. If Bessent thought we had a bond market problem before, sounding the alarm made the problem much worse.

A @CNBC guest just dismissed the doubling of the national debt in ten years because household net worth more than doubled over that time. But the debt is a permanent obligation that must be serviced and repaid. Net worth, besides being overly concentrated, is transitory as it can evaporate if rising interest rates crash over-valued stock and real estate prices.

https://t.co/E9LAEQb3y0

The Treasury Just Admitted It... The Bond Market Is Broken https://t.co/gDZw0iJRbE

Trump's unprecedented economic sanctions on Iran not only won't work, but they'll backfire. Other nations will violate the restrictions and Trump won't be able to follow through with his retaliatory sanctions. Plus, the dollar will weaken and food and energy prices will rise.

Smart investors are finally figuring it out. They bought this morning's selloff in gold despite the rise in bond yields, as it’s becoming more obvious that a bear market in bonds fuels a bull market in gold. The best way to avoid losing money in Treasuries is to buy gold instead.

The Treasury Just Admitted It... The Bond Market Is Broken New Episode. https://t.co/k5kF6FUwD9

Treasury bond yields have already resumed their rise. Treasury is going to need a much bigger boat to stop this train. That means not only a much larger buyback than what has already been announced, but the Fed will have to join the party with an official QE program. Got gold? Following this post, and after I made the same prediction on my podcast last night, the Treasury Secretary told CNBC that they're already expanding the $4 billion per buyback limit.

Bitcoin's rally above $72K is a fakeout, not a breakout. The Treasury buyback announcement caught markets by surprise. Bitcoin investors have long believed a return to easy money would be the catalyst for gold and Bitcoin to soar. They are only half right. Sell Bitcoin, buy gold.

The U.S. national debt is over $40 trillion, with $11.58 trillion added on Trump's watch, the most of any president. Obama is in second place with $9.32 trillion, but Trump has almost 2.5 years left to add to his lead. Biden still holds the single-term record with $8.47 trillion.

@grok @SoaringEagle555 Actually it's very far off. Not so intellegent after all.

@SoaringEagle555 @grok No fair cheating

I'll be doing another podcast late tonight from my boat discussing today's Treasury announcement and the market's reaction. See if you can guess from this drone video where I was when I did the last one. https://t.co/DZiZ2eqgCF

@DawsonTu3 We don't sell our own gold. We help our customers buy gold from wholesalers.

Today the Trump administration should have dashed any remaining hopes that Warsh will achieve his goal of 2% inflation. Gold's rise of more than $170 so far today, trading above $4,500, confirms that higher inflation is not only here to stay, but that it's headed much higher.

@DougKass @CNBC You are correct. CNBC sold out its audience to advertisers years ago.

@DougKass @TheStreetPro Yes, but this is just the start. Since it's too small to work the Fed will ultimately join in with QE. So the money printing is coming. Gold is already reacting to that inevitability.