We’re Burning Through Our Balance Sheet

On Friday’s episode of the Peter Schiff Show, Peter connects the dots between military spending, economic coercion, and what he sees as deeper flaws in U.S. monetary and fiscal policy. He warns that the U.S. is depleting physical and financial resources at the same time that the Fed’s structure and tariff politics create perverse incentives. He also highlights strong earnings in gold stocks and reiterates his skepticism about crypto and corporate gimmicks.

Peter opens by worrying that the military campaign is unsustainable and that we’re literally running out of munitions while rival powers watch:

I mean we’ve blown through a tremendous percent of our arsenal and now we’re in a position that if we keep doing this, we’re gonna run out. At this point, what are we gonna be blowing up? I mean are we gonna be blowing up stuff that’s less valuable than the bombs that we’re dropping or the missiles that we’re launching, and it’s gonna cost us a fortune to, you know, reproduce these, you know, and obviously the companies that manufacture them are very excited about getting these orders. But still it takes a lot of resources to be devoted to make it.

Peterson Field Guide T... Peterson, Roger Tory Check Amazon for Pricing. He frames the current confrontation as an economic war rather than an outright military showdown, noting how policy rhetoric has shifted to blockades and pressure on trade routes:

Trump is now casting the war as an economic war that we’re just gonna wait it out because we’ve got this blockade now. Remember it used to be about opening the Strait of Hermos, like we were trying to threaten Iran. In fact Trump was going to level the entire country, the civilization was gonna be destroyed never to return, it was gonna rain down hell. There were all sorts of threats about blowing up the power plants, blowing up the bridges if they did not open the Strait of Hermos. Where have we gone from there?

From there he pivots to the Federal Reserve, framing it as a private banking syndicate with a strange revenue model that changes incentives for spending and accounting:

The Federal Reserve was created as a private banking syndicate. It generates a profit like any other private enterprise and it pays the tax to the US government. Now it doesn’t pay the normal tax that everybody else pays; it has a special tax, you know, regiment where the, you know, and their shareholders—there are banks that are the shareholders of the Federal Reserve—but the Federal Reserve is allowed to make a particular return on its total capital investment.

He returns to crypto and corporate finance, taking aim at Michael Saylor and the financing structures that prop up speculative schemes. He uses plain language to call out what he sees as a Ponzi-like pattern of recycling investor money to pay yields: BALANCE AND FALL PREVE... Sievernich, Patrick J. Check Amazon for Pricing.

Michael Saylor was able to spend another two and a half billion buying it because he unloaded so many shares of his Ponzi scheme known as Stretch …. The only reason it’s not a Ponzi scheme technically is because if you’re running a Ponzi scheme you’d never tell people it’s a Ponzi; they think it’s legitimate investment. … The way it’s financed is we pay you a yield, but we don’t earn the money to pay it to you—we get it from new investors who we sell the same security to, and now we get money from them and we give it to you.

Finally, he ties policy choices back to the federal budget and points out an odd legal loophole around tariff refunds that could worsen deficits as debt keeps rising toward $40 trillion:

But if you are the business that imported this stuff and you wrote the check to the US government, you get your money back, all of it. … All of this is going to be a burden on the federal budget, so we expect to see the deficits increasing as the government is no longer collecting as much tariff revenue. … The national debt now is 39.16 trillion; we will be 40 trillion probably before the summer, and then when we get into the next recession things are really going to start to spiral out of control.

This article was originally published on SchiffGold.com.

Vitafusion Fiber Well ... Check Amazon for Pricing. Dr. Berg Maximum Stren... Check Amazon for Pricing. Naturebell Pure Magnes... Check Amazon for Pricing. Seed DS-01 Daily Synbi... Check Amazon for Pricing.