CPI Hits 3.3%, Consumer Sentiment Hits Record Low — Stagflation Is Here

Peter Schiff delivers a critical analysis of the U.S. economy in his Friday market wrap, warning that stagflation is now a reality. He argues that the recent 3.3% year-over-year CPI increase and record-low consumer sentiment of 47.6 signal a deepening economic crisis, driven not by war-related oil spikes but by reckless monetary policy and massive government spending. Schiff debunks the narrative that high oil prices cause inflation, asserting instead that inflation stems from the Federal Reserve's expanding money supply and balance sheet—evidenced by a 5% M2 growth and $18.5 billion weekly balance sheet increase. He criticizes President Trump’s economic claims, noting that GDP growth has slowed to 0.5% in Q4 2025, well below expectations, and that Trump’s 2.1% annual growth rate is lower than Biden’s best years. Schiff also highlights the psychological divide between Trump’s base and reality, with Republicans expecting zero inflation due to blind loyalty, while independents see the true economic pain. Despite market rallies on a temporary ceasefire, Schiff sees the fundamental economic picture as deteriorating, making gold, silver, and mining stocks more compelling than ever. Schiff concludes with strong investment recommendations: buy gold now below $4,750, silver near $75, and mining stocks through his asset management firm or the Europe Pacific Gold Fund. He emphasizes that the recent pullback in precious metals was healthy, clearing out speculative excess and setting the stage for a powerful bull market. He also promotes his T-Gold account and a new sponsor, West Red Lake Mining, as part of his broader strategy to position listeners for the coming monetary collapse. The episode ends with a call to action: subscribe to the Shift Gold channel, share the content, and prepare for a future where the dollar weakens and gold becomes the ultimate store of value.