Archive · 27 Dec 2025
Economist Warns of US Dollar Collapse
Economist Peter Schiff is warning that the US dollar might soon lose its status as the world's top currency.
He believes that gold will become more important for central banks.
Schiff thinks the dollar will drop in value compared to other currencies, which could lead to a big economic problem for the US.
He points to things like high gold prices and central banks buying less US debt as signs of this change.
Some people agree with him, while others think the dollar will stay strong.
The main reasons for this shift include worries about the US government's debt and the use of financial sanctions by the US.
Economist Peter Schiff warns that the US dollar's dominance is ending, with gold becoming the primary central bank reserve asset.
The US Dollar Index has fallen to 97.94, its worst yearly performance in over 20 years.
Central banks now hold more gold than US Treasuries, with gold reserves worth $4.5 trillion compared to $3.5 trillion in US Treasuries.
The US federal budget deficit reached $1.74 trillion, and national debt has surpassed $37 trillion, raising concerns about the safety of US Treasuries.
Geopolitical shifts and the use of financial sanctions have led to a trend of de-dollarisation, with countries increasing gold allocations and reducing exposure to US debt.
- Who
- Economist Peter Schiff and other financial analysts
- What
- Warning about the potential collapse of the US dollar and the rise of gold as a primary reserve asset
- When
- December 2025
- Where
- Global financial markets
- Why
- Due to concerns over US fiscal position, inflation risks, and geopolitical shifts
- US Dollar Index
- 97.94 (as of December 2025)
- Gold Reserve
- 36,000 metric tons (worth $4.5 trillion)
- US Treasury Holdings
- $3.5 trillion
- Federal Budget Deficit (Nov 2024 - Oct 2025)
- $1.74 trillion
- National Debt
- Beyond $37 trillion
- Reduction in US Treasuries by Foreign Central Banks
- $183 billion (since April 2025)
