Economist Peter Schiff has warned that all banks will fail and anyone having a bank account will end up losing money. “No matter what happens, people are going to lose a tremendous amount as this banking crisis unfolds,” Schiff stressed.

Peter Schiff Warns About All Banks Failing

Economist and gold bug Peter Schiff reiterated his concerns regarding the state of the U.S. economy and the impending banking crisis on the David Lin show, published last week.

“The whole banking sector is completely insolvent, thanks to what we’ve done over the last decade or so by loading up these banks with all this long-term, low-yielding debt. And we had all [this] deposit insurance so nobody really cared about what the banks were doing with their money because it was all insured by the government,” Schiff described.

However, he stressed that the collapses of major banks earlier this year have made people aware that the government may not fully cover all bank deposits in the event of a failure, especially if the amount exceeds the FDIC insurance limit. “The message that sends is if you’re a customer of a small bank, a regional bank, [or] a community bank, and you’ve got a large account, you just better get your money out. There’s no reason to leave it there. They can’t pay you enough interest to compete with a money market and what if the bank fails? You may be, you know, SOL,” Schiff detailed, cautioning:

So, there’s a huge run on these banks. They’re all going to fail.

The gold bug added that if the government wants to bail out all of these banks, “the only way it can do it is by destroying the value of the deposits because of massive inflation.” He emphasized: “The money to bail out the banks has to be created by the Fed. It’s the only way they’re going to get it.”

Schiff further warned:

It doesn’t matter if your bank fails, you’re going to lose money if you have a bank account.

The economist explained that “either the bank’s going to fail because the government doesn’t bail it out and you’re going to lose your deposits or the government bails out your bank and your deposits lose their value because inflation destroys the purchasing power. So, no matter what happens, people are going to lose a tremendous amount as this banking crisis unfolds.”

Moreover, Schiff recently said the Federal Reserve has lost the inflation fight but the markets have not figured that out yet. He stated that the Fed has destroyed the banking system and Fed Chair Jerome Powell is “clearly worried” about a financial crisis. He also warned about a U.S. dollar crisis and the national debt spiraling out of control.

Last month, Rich Dad Poor Dad author Robert Kiyosaki similarly cautioned that more banks are about to fail, noting that regional banks are being wiped out. In May, the Fed revealed that 722 banks reported unrealized losses over 50% of capital.

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