US Dollar Collapse Will Impoverish the Vast Majority of Americans, Peter Schiff Warns
The U.S. dollar is hurtling toward collapse, threatening to obliterate American living standards, economist Peter Schiff warns, as deficits soar, inflation bites, and emerging markets gain unstoppable momentum.
Economist and gold advocate Peter Schiff issued a sharp critique of recent U.S. trade and fiscal policy on social media platform X this week, warning that these measures are accelerating the U.S. dollar’s decline and pushing the nation toward financial deterioration.
“The U.S. dollar is on the verge of collapse, which will impoverish the vast majority of Americans whose living standards depend on the overvalued dollar,” the gold bug wrote on Aug. 6. In a subsequent post, Schiff condemned the decision to impose 50% tariffs on imports from India, arguing that such protectionist measures threaten to erode domestic consumer power while strengthening emerging economies. He stated:
A dollar crash will impoverish Americans but enrich foreign consumers, particularly the BRICS. The death of the U.S. consumer means the birth of the emerging market consumer.
BRICS, now comprising Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran, UAE, and Indonesia, has significantly expanded its geopolitical clout in 2025. This economic bloc of emerging economies is accelerating efforts to reduce dependency on the U.S. dollar. Tensions with the U.S. have escalated, with President Donald Trump threatening steep tariffs on BRICS-aligned nations. Meanwhile, BRICS is also deepening ties with partner countries like Nigeria and Vietnam to reshape global economic power.
According to Schiff, the U.S. policy approach reveals deep vulnerabilities in the country’s economic model and could lead to a long-term shift in global demand away from the American market.
His warnings highlight a broader concern about the dollar’s weakening role as the world’s reserve currency. Schiff asserted that unsustainable levels of government borrowing, coupled with inflated asset values, pose a significant risk to household stability. He pointed to a growing disconnect between fiscal expansion and economic fundamentals, emphasizing that rising deficits and inflation could continue to erode real wages and savings. The economist maintains that this trend may redirect investment flows toward developing nations that are poised to benefit from the relative decline in U.S. consumer influence.
