Peter Schiff blasts Biden's 'reckless fiscal policy,' predicts double-digit inflation in 2025 — and he says it could even be in excess of 20%. Here's what he likes for protection

But according to Peter Schiff, CEO and chief global strategist at Euro Pacific Capital, the problem of escalating prices in the U.S. is far from resolved.

“If Americans thought #inflation of 9.1% was bad, wait until they experience what's coming,” he wrote in a recent tweet.

Schiff, an economist known for forecasting the 2008 financial crisis, now identifies both monetary and fiscal policies as the driving forces behind the looming inflation crisis.

“Thanks to the #Fed's reckless monetary policy and the #Biden administration's reckless fiscal policy, soon consumers will long for the good old days when inflation was in the single digits.”

The U.S. hasn't experienced double-digit inflation since the early 1980s.

‘The first digit may not be a one!’

Schiff also highlighted rising commodity prices as an indication that higher inflation is on the horizon.

“Look at this chart of the CRB,” he noted in a separate tweet, sharing a chart of the CRB Commodity Index that monitors the prices of a diverse range of commodities.

Commodity prices are commonly believed to be a leading indicator of inflation. When the cost of raw materials goes up, that eventually gets reflected in the price of final products — and consumer prices go up.

Schiff cautioned, “This will likely be the biggest commodity bull market since the 1970s. By 2025 #inflation will likely be in double digits, and the first digit may not be a one!”

The message is alarming. The last time the country saw an inflation rate of over 20% was in 1947, driven by the elimination of war-time price controls, supply shortages and pent-up consumer demand.

Protect your purchasing power

Inflation erodes the purchasing power of your hard-earned money. Due to the link between commodities and consumer prices, investing in commodities can serve as an effective hedge against inflation.

Investors can add commodity exposure to their portfolios through commodity futures, ETFs, or the stocks of companies that operate in this area.

Among various commodities, Schiff has a clear favorite: gold.

A long-time advocate for the yellow metal, Schiff described gold as a "safe haven" from inflation in 2021 — a time when inflation rates began to climb sharply in the U.S.