Gold bug and economist Peter Schiff has expressed concerns about the U.S. banking system, claiming that the Federal Reserve has destroyed it. Schiff argues that the system is insolvent and would collapse without government assistance.

He points to low interest rates on savings and checking accounts compared to higher inflation rates and the Fed funds rate. Schiff has warned that the banking system is on the verge of a larger collapse than in 2008, as banks struggle to compete with short-term Treasuries.

He believes mass withdrawals from depositors seeking higher yields could lead to a wave of bank failures. Schiff also criticizes the government’s bailouts, stating that they exacerbate inflation and socialize current losses.

Additionally, he warns of a potential U.S. dollar crisis and economic depressions, cautioning against reckless government spending and borrowing.