The current bond market volatility is not merely a temporary fluctuation, but the beginning of a secular bear market that could span two decades, according to Schiff. With the 10-year Treasury yield recently touching 5.35% and mortgage rates climbing toward 7.5%, the government’s interest burden is ballooning toward an estimated $3 trillion annually. Schiff argues that Washington, once the global guarantor of financial stability, is now the primary borrower in distress, rendering it incapable of bailing out the broader economy as it did in 2008.

Schiff contends that the Federal Reserve’s cycle of rate hikes will continue until the financial system breaks, likely triggering a crisis similar to the collapse of Silicon Valley Bank. He views the shift in corporate behavior—where major tech firms are now borrowing to fund AI infrastructure rather than lending cash to the Treasury—as an additional catalyst for higher rates. For investors, he suggests that physical gold and precious metal mining equities remain the most viable hedge against a systemic devaluation of the dollar, predicting that gold could reach $5,000 an ounce as central banks continue to accumulate reserves.