By the time the 2028 election rolls around, Americans may look back at 2026 with a strange sense of nostalgia.
That’s the warning from economist and investor Peter Schiff, who said in a post on X yesterday:
“By the time the 2028 general elections roll around, voters will look back at 2026 as the good ol’ days when stuff in America was so affordable.”
The comment came amid growing concerns that the global economy is preparing to shift away from the U.S. dollar’s long-held dominance.
For decades, the dollar has been the world’s reserve currency. It’s the one central banks hold, the one countries trade with, and the one investors turn to during times of crisis.
But now, cracks are starting to show. Schiff and other economists say that international confidence in the dollar is slipping, and fast.
“Trump has finally given the world the motivation to do what it should have done on its own decades ago,” Schiff said.
“If Americans think there’s an affordability crisis now, wait until they see what happens to consumer prices and interest rates when the world pulls the rug on the U.S. dollar.”
Recent Events Are Fueling the Fire
A lot of this concern stems from recent moves by President Donald Trump.
His push to take over Greenland, along with fresh tariffs on eight European countries and public clashes with the Federal Reserve, has rattled markets. According to CNBC, analysts are calling it a “sell America” moment.
U.S. stocks took a dive, the dollar dropped by nearly 1% in a single day, and bond prices fell sharply, sending interest rates higher.
Meanwhile, gold saw its biggest one-day jump since 2020 as investors scrambled for safer assets.
Krishna Guha, head of global policy at Evercore ISI, told clients: “This is ‘sell America’ again within a much broader global risk off.”
He also said that investors seem to be “looking to reduce or hedge their exposure to a volatile and unreliable” United States.
A Global Shift Away From the Dollar
While the immediate market reaction is alarming, economists say it’s part of a broader, slower shift toward what they call de-dollarization.
More countries and companies are preparing for a future where the U.S. dollar is no longer the world’s go-to currency.
Sophie Stuart-Menteth of Six Analytic explained that “the search for alternatives is accelerating,” with nations increasing their use of non-dollar currencies, stockpiling gold and Bitcoin, and building financial systems designed to operate outside of U.S. control.
China, for example, has expanded its currency swap networks through its Belt and Road Initiative.
Russia and Iran, both under heavy U.S. sanctions, have shifted most of their trade to systems that bypass American influence entirely.
Even the Trump administration has acknowledged the changing landscape, announcing a Strategic Bitcoin Reserve in 2025.
Why It Matters to Everyday Americans
The dollar still plays a dominant role today, thanks to the strength of U.S. capital markets.
But experts say that could change. Stuart-Menteth warned that “the underlying shifts towards a fragmented, multipolar monetary landscape will only become progressively more evident.”
If fewer countries want to hold U.S. dollars or buy government debt, the government may have to offer higher interest rates to attract buyers.
That trickles down to consumers in the form of more expensive mortgages, credit cards, and car loans.
Ray Dalio, founder of Bridgewater Associates, described it at Davos as a potential “capital war” where foreign investors might actively avoid U.S. assets.
In simple terms, if demand for the dollar drops, everything from food to electronics could get more expensive.
And if inflation spikes again while wages stay flat, affordability will only worsen.
Will Trump Change Course?
Some analysts think Trump might reverse some of his more aggressive moves, a pattern they’ve dubbed “TACO,” short for “Trump Always Chickens Out.”
But others say that’s far from certain this time around.
“What remains to be determined is the magnitude and duration of these dynamics,” Guha noted. In other words, the dollar isn’t doomed yet, but the warning signs are hard to ignore.
If this global shift away from U.S. financial dominance continues, Schiff may be right. Americans could soon find themselves longing for what they once complained about: the prices of 2026.
IMAGE CREDIT: “Peter Schiff” by Gage Skidmore, via Flickr. Licensed under CC BY-SA 2.0. Image adjusted for layout.