The Bond Market Is About to Break… And Stocks Go With It

Peter Schiff warns that five years and sixty-five months of above-2% inflation signal a deeper problem than the Federal Reserve admits, and that rising commodity prices tied to the Iran war could push the bond market and then stocks into serious trouble. He argues that policymakers are lying about both the economy and the conflict, and that voters will ultimately hold Republicans accountable for the price increases.

Peter Schiff points to oil nearing $100 a barrel, diesel at record levels, and copper hitting an all-time high of roughly $6.76 a pound. He says copper is up close to 60% since Trump took office and, measured against gold, still looks cheap, arguing that rising prices reflect a weakening dollar rather than genuinely pricier goods.

On the war, Peter Schiff contends the conflict began more than six months ago with promises of a quick victory that never materialized. He says Iran has survived the bombing, the regime remains in power, and the strategy has shifted toward economic warfare that he believes the United States will also lose. He also argues that tariffs, including Canada’s retaliatory duties, mainly harm American consumers and companies. He notes that China’s trade surplus is on pace for a record despite reduced exposure to the U.S. market.

Peter Schiff also argues the Federal Reserve is unlikely to raise rates meaningfully, since a 25-basis-point hike would not curb inflation and would only invite further hikes. He flags the growing federal interest burden, which he says could approach $2 trillion annually by the end of Trump’s term.

Key takeaways

• Peter Schiff argues that inflation has stayed above the Fed’s 2% target for sixty-five months and will likely keep rising as oil and copper climb.
• He warns that hot inflation data could trigger serious selloffs in the bond and stock markets.
• Peter Schiff says the Iran war has failed to meet its stated goals and has shifted into an economic war the U.S. is also likely to lose.
• He contends tariffs mainly punish American consumers and do not reduce the trade deficit in a lasting way.
• Peter Schiff predicts rising prices will hurt Republicans at the polls in the 2026 midterms.
• He presents copper-clad nickels as a low-risk hedge against currency debasement.