The Big, Beautiful Bill not only won't make America Great Again, but it continues the destructive fiscal policies that contributed to our fall from greatness. Ironically, it may be the straw that breaks the camel's back, ushering in a long overdue dollar & sovereign debt crisis.
— Peter Schiff (@PeterSchiff) May 24, 2025
Peter Schiff saw this coming. Years ago, he warned that America’s addiction to debt would end in betrayal, not reform. That betrayal now wears a red-white-and-blue ribbon and calls itself the Big, Beautiful Bill. It isn’t beautiful, and it certainly isn’t big in the way this country needs. What it is, is final. A seal on the coffin of fiscal sanity.
When Trump first stormed the political stage in 2016, fiscal hawks had reason to hope. Maybe, finally, someone would jam a wrench into the gears of the spending machine. Elon Musk’s name was tossed around among those pushing for sound money and structural reform. What came instead was familiar—just bigger, louder, and more destructive. This bill confirms it. The swamp wasn’t drained. It was fed.
Forget spending cuts. They aren’t in the bill. Not even token ones. No entitlement reform. No attempt to claw back pandemic-era excesses. Just more blank checks written on the back of a currency people are beginning to question. It is not reform. It is surrender.
Debt to GDP is already above 120 percent. That’s not a projection—it’s current reality. Interest payments on that debt are exploding. We’re weeks, maybe months, from watching those payments surpass the entire defense budget. We are now borrowing money to service the interest on the money we borrowed before.
Foreign buyers have started stepping away from Treasury auctions. Bid-to-cover ratios are deteriorating. The Fed can step in, but every step it takes costs the dollar more trust. Artificial demand can prop up the illusion, but not indefinitely. When the world begins to doubt repayment, it begins to question the worth of the promise itself. That promise is the dollar. And the dollar is weakening.
Every failed auction, every silent foreign desk, every softening dollar tick is a crack. And they’re spreading. The bill’s defenders will blame geopolitics, war, or the Fed. But the rot is domestic, and the trigger is legislative. It’s not even stealth QE anymore—it’s structural rot baked into the system. A system no longer trying to fix itself.
The irony is grotesque. The slogan that promised to make America great again now risks locking in its financial decline. We’re not facing a future debt crisis. We are living through the early chapters. It will not erupt in a headline. It will smolder. Until the moment it doesn’t.
The dollar holds because the world believes in America’s will to stabilize. That belief is fragile. Once it breaks, it breaks fast.