Tom welcomes back Peter Schiff, the CEO and Chief Economist of Euro Pacific Asset Management, Chairman of Schiff Gold, and host of Schiff Radio to the show.

Peter discusses inflation, central banking policies, and the implications of stagflation on the economy. He emphasizes that inflation is fundamentally caused by an expansion in the money supply and credit, rather than rising prices alone. Schiff argues that the Federal Reserve's actions, including quantitative easing and low interest rates, have fueled inflation and exacerbated economic instability.

Schiff critiques the government's handling of inflation, noting that it often deflects blame onto businesses or labor unions instead of addressing the root causes. He warns that continued deficit spending and debt accumulation will lead to higher inflation and potentially a financial crisis. Schiff also highlights the role of tariffs and trade policies in affecting prices and trade deficits, though he doubts their effectiveness in fundamentally altering the economic landscape.

The discussion turns to gold and precious metals as a hedge against inflation. Schiff notes that despite record earnings from gold mining companies, investor sentiment remains cautious, with many preferring speculative assets like cryptocurrencies or AI stocks. He believes this presents an opportunity for investors to capitalize on undervalued gold mining stocks before prices rise significantly.

Schiff also touches on the potential impact of rising interest rates in Japan and the yen carry trade, warning that unwinding these positions could disrupt global markets. Additionally, he discusses the role of central banks in buying gold as a form of portfolio insurance and predicts continued demand for precious metals as investors seek safe havens amid economic uncertainty.

Time Stamp References:0:00 - Introduction0:45 - Causes of Inflation9:40 - Fed Inflation Targets15:09 - Fed & Data Dependence17:37 - Lower Dollar Problem22:10 - Deepseek AI & China24:33 - Overvaluations27:36 - Tariff Threats & Trade31:18 - Japanese Bond Yields34:40 - LBMA & Lease Rates38:33 - Country of Origin41:47 - Gold Chinese Insurers48:38 - Miners and Earnings58:12 - Thoughts on Silver1:00:59 - Wrap Up

Tallking Points From This Episode

Inflation is caused by money supply expansion, not just rising prices, and central banks are the primary culprits.

Gold and precious metals offer protection against inflation, with mining stocks currently undervalued despite strong fundamentals.

Economic instability and stagflation risks loom large, driven by debt, deficits, and ineffective monetary policies.

Guest Links:Podcast: https://schiffradio.com/Website: https://schiffgold.com/Website: https://schiffsovereign.com/Website: https://europac.com/Twitter: https://twitter.com/PeterSchiffYouTube: https://www.youtube.com/channel/UCIjuLiLHdFxYtFmWlbTGQRQ

Peter Schiff is an honorary chairman of SchiffGold, founder of Euro Pacific Asset Management, and host of The Peter Schiff Show. Peter is an economic forecaster and investment advisor influenced by the free-market Austrian School of economics. He is one of the few forecasters who accurately and publicly predicted the 2007 housing market collapse and subsequent 2008 financial crisis. His latest best-selling book, The Real Crash: America's Coming Bankruptcy - How to Save Yourself and Your Country, warns that the 2008 crisis was just the prelude to a larger sovereign debt crisis in the United States that may lead to a collapse of the US dollar. Peter recommends long-term investment in foreign markets with sound fiscal policies, as well as global commodities including buying gold, silver and other physical precious metals.