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Michael Saylor’s 11% Yield Is a Ponzi Scheme — Here’s the Proof

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Peter Schiff argues that Michael Saylor’s Strategy (formerly MicroStrategy) and its “Stretch” preferred shares, which advertise an 11% yield, operate like a Ponzi scheme. In this episode of The Peter Schiff Show, he lays out why he believes the yield is funded by selling new securities to new investors rather than by real earnings, and he questions why regulators have not acted.

Peter Schiff explains that Saylor’s company does not generate the cash needed to pay Stretch holders, so the payouts depend on a steady flow of fresh investor money. He notes that the structure of the offering, which the company describes openly in its fine print, mirrors how Ponzi schemes have always been financed. He also points out that Strategy can stop paying dividends at any time, leaving holders with shares whose value depends entirely on continued new demand.

Beyond Strategy, Peter Schiff covers the broader economy: he argues the war with Iran is failing, that closing the Strait of Hormuz will push oil and inflation higher, and that a weakening dollar could drive long-term rates up. He also criticizes the Federal Reserve’s unusual profit structure, which he says encourages wasteful spending, and the Justice Department’s dropped probe of Jerome Powell.

On gold and mining, he reports that gold and silver consolidated after a major breakout, and he highlights Newmont’s strong first-quarter results as evidence of a highly profitable sector. He also discusses tariff refunds, rising federal debt, and why he believes deficits will reach new highs.

Key takeaways

  • Peter Schiff contends that Strategy’s Stretch preferred shares depend on new investor money to fund existing yields, which he describes as Ponzi-style financing.
  • According to Peter Schiff, the company can suspend dividends at will, so holders bear the risk if new demand dries up.
  • Peter Schiff argues the Iran war has not achieved its goals and that the blockade of the Strait of Hormuz will raise oil prices and inflation.
  • Peter Schiff warns that rising deficits and a possible dollar sell-off could push long-term rates higher and destabilize markets.
  • He sees gold miners such as Newmont, with a cost of roughly $1,029 per ounce against a sale price near $4,900, as highly profitable investments.
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Saylor’s 11% yield can only be paid by selling new shares — and the fine print says he can stop paying whenever he wants. That’s a Ponzi scheme.
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Newmont Mining just posted 132% earnings growth with five-to-one margins and a stock trading at 10x earnings — half the S&P multiple — and Wall Street barely noticed. Peter Schiff breaks down why gold miners are the most undervalued sector in the market and why he’s been accumulating positions in companies like Newmont, Franco-Nevada, and Wheaton for over 20 years without selling a share.
The episode also covers Trump’s Iran war pivoting from threatened annihilation to an economic blockade that’s keeping oil above $94, the DOJ dropping its criminal investigation into Jerome Powell’s Fed building remodel as an olive branch to clear the way for Kevin Warsh, Schiff’s own six-year experience with leaked government investigations that were never officially closed, Michael Saylor’s Strategy preferred stock as a self-described Ponzi scheme the SEC refuses to touch, and a new cottage industry of mass tort lawyers helping businesses claim tariff refunds — proof that Americans, not foreigners, paid every cent of those tariffs.
Chapters:
00:00 Cold Open Montage
00:57 Show Intro Puerto Rico
01:28 War Drags On Markets Shrug
04:27 Blockade Strait Oil Spike
08:18 Election Pressure Inflation Risks
13:22 Commercial AI Mastermind Ad
15:54 Post Office Hikes Inflation
16:41 Powell Probe Fed Incentives
22:31 Schiff Investigation Story
30:00 Commercial ExpressVPN Pitch
31:37 Gold Friday Market Wrap
34:35 Newmont Earnings Surge
36:52 Gold Miner Margins Explained
38:20 Buybacks and M&A Signals
39:27 West Red Lake Pullback
40:19 Buying Bad News Strategy
42:38 Position Sizing and Risk
45:04 Gold Fund and Active Picks
46:40 Bitcoin Yield Ponzi Rant
53:18 Tariff Refund Fallout
56:50 Debt Deficits and War
01:02:01 Wrap Up and Subscribe
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