The Peter Schiff Show Podcast

Episode: Honor Washington's Birthday, the Father of Our Republic - Ep 1010
Date: February 17, 2025
Host: Peter Schiff

Overview

This episode centers on the significance of Washington’s Birthday, the distortion of its meaning into “President’s Day”, and why Peter Schiff believes this matters for American cultural and civic life. Schiff then shifts to current market and economic analysis, focusing on the recent inflation data, movements in gold and silver prices, implications of potential tariffs, and the growing risk of unsustainable US deficits. The episode is dense with historical commentary, economic insight, and forthright criticism of both U.S. policy and public misunderstanding of foundational American concepts.

Segment 1: Washington’s Birthday vs. President’s Day (00:02–12:30)

Key Discussion Points

• Misnaming the Holiday:
  Schiff expresses frustration with the general use of "President's Day" instead of Washington's Birthday. He notes that, legally, it is still called Washington’s Birthday, but the date was shifted in 1968 to always fall on the third Monday of February for the sake of three-day weekends.

  • “Almost every American knows tomorrow's holiday as President's Day. And you know, that's always pissed me off that we call Washington's birthday President's Day.” (01:25)

• Commercialization of the Holiday:
  Schiff explains how retailers capitalized on the February birthdays of Washington and Lincoln by launching “President’s Day Sales” in the 1980s, diluting the holiday’s original meaning.

  • “It shows you the commercial nature of the US economy. … But now I don’t even think people associate President’s Day with any particular president, whether it’s George Washington or Abraham Lincoln. I think they think it's just a holiday to honor the presidents, which would include Joe Biden. I mean, who the hell wants to honor him?” (05:00)

• Washington’s Unique Place in History:
  Schiff emphasizes that only George Washington deserves a federal holiday, setting him above all other leaders, including Martin Luther King, Jr.

  • “I still don't think we should have Martin Luther King Day. It's not because I'm a racist ... it's because I don't want to put anybody, including Martin Luther King, on the same level as George Washington.” (07:40)

• Defending Washington's Legacy:
  Schiff addresses common criticisms of Washington for being a slave owner, arguing for historical context and noting that Washington ultimately freed his slaves.

  • “You can't just judge a man by the fact that he had slaves ... The whole world had slaves. In fact, America was at the forefront of ending slavery.” (10:30)

Memorable Moment / Quote

• On Washington’s Character:

  “George Washington didn't want to be king. He put country above himself. ... But for George Washington, we wouldn't be a republic, we would be a monarchy.” (09:00)

Segment 2: Republic vs. Democracy—Civic Education (12:30–19:00)

Key Discussion Points

• Clarifying Terms:
  Schiff stresses the importance of understanding that the United States is a republic, not a democracy, and highlights common public confusion, even among influential people like Elon Musk.

  • “He [Elon Musk] should use that soapbox to educate people about republican government and to be proud that America is a republic. We're not a monarchy and we are not a democracy.” (12:54)

• Constitutional Foundation:
  Schiff references Article IV of the Constitution, the Pledge of Allegiance, and statements from the Founding Fathers to underscore the deliberate design of a republican—rather than democratic—form of government.

  • “It’s not about democracy, it’s about self-government. We are not ruled by nobility, we are ruled by ourselves, by common folk, because that’s all there is. Nobody is above anybody else.” (16:00)

• Democracy vs. Republicanism:
  Schiff lays out the dangers of unrestrained democracy and describes the system of checks and balances designed to prevent majority rule from trampling individual rights.

  • "Our elected representatives are not supposed to take a poll and do what the majority of people want them to do. They're supposed to use their own judgment and do what they think is right—even if the majority…have the opposite opinion." (17:32)

Notable Quote

• “You ask, they asked Benjamin Franklin, what kind of government did you give us, Mr. Franklin? 'A republic, if you can keep it,' was the response.” (19:00)

Segment 3: Inflation Data & Market Reaction (31:00–46:30)

Key Discussion Points

• Recent Inflation Numbers:
  Schiff recaps the release of hotter-than-expected Consumer Price Index (CPI) and Producer Price Index (PPI) data, as well as the revision of previous months’ figures, underlining persistent inflation higher than the Fed’s 2% target.

  • “We got a much hotter than expected CPI, and that was followed up on Thursday by a hotter than expected PPI. ... Even worse, the prior month ... they revised it up from 0.2 to 0.5.” (32:12)

• Gold and Silver Price Action:
  Schiff analyzes the volatility in gold and silver markets around the inflation data, describing an anticipated but not yet sustained breakout in silver and a surprising sell-off in gold and mining stocks despite strong earnings.

  • “Gold stocks sold off and gold got clobbered. ... On Friday, we got the retail sales numbers and they were much weaker than expected. This should have caused gold to rally and it didn't.” (34:00)

• Market Psychology:
  Schiff discusses how market participants assume future gold prices will fall, depressing mining stock valuations, and argues this is irrational based on fundamental trends over the last 20 years.

  • “Everybody on Wall Street just assumes that, you know, a few years from now gold is going to be a lot cheaper. And so that is impacting their outlook for future earnings.” (41:00)

Notable Quote

• “If gold demand really picks up, which it should, we won’t be able to meet it with our domestic production ... If there’s a 25% tariff, who’s going to want to pay 25% more for their gold? ... Don't wait to buy your gold after there’s tariffs. That’s the worst time to buy it.” (31:00, 47:00)

Segment 4: Tariffs, Gold Imports, and Buying Advice (46:30–53:30)

Key Discussion Points

• Potential Tariffs on Gold & Silver:
  Schiff highlights news on increased gold imports ahead of likely tariffs and urges listeners to secure physical metal before price hikes.

  • “A lot of gold has been coming into the United States, a lot of it coming in from London. ... If Trump imposes 25% tariffs on gold, any gold coming into this country is going to be marked up by $25 [per $100].” (47:00)

• Investment Recommendations:
  Schiff recommends prioritizing silver over gold at current ratios and points to coming opportunities as market volatility creates attractive entry points.

  • “People should be buying these stocks I think next week ... And silver, people should be buying, I think silver now more than gold.” (44:00)

Memorable Moment

• “We got a gift on Friday that we got some profit taking on the good news giving more people the opportunity to buy gold stocks.” (53:00)

Segment 5: U.S. Federal Deficit, Debt, and the Coming Crisis (53:30–65:30)

Key Discussion Points

• Record Federal Deficits:
  Schiff details the historic size of the first quarter 2025 deficit ($711 billion), highlighting that even in purportedly 'strong' economic conditions, deficit spending is greater than ever.

  • “So we have such a strong economy, why do we have the biggest deficit in any quarter in history?” (55:30)

• Interest on the National Debt:
  Interest payments now surpass all federal spending except Social Security.

  • “By next year, we’ll be spending more on interest on the national debt than we spend on Social Security. And then we’ll be spending more on interest ... than we spend on Medicare and Medicaid combined.” (57:30)

• Fiscal Unsustainability:
  Schiff warns that the U.S. is on a path to a sovereign debt crisis and currency collapse unless drastic cuts are made, and challenges political leaders—Trump in particular—to take a stand.

  • “We need to transition from a borrow and spend economy to a save and produce economy. That's not a fun economy compared to just going out and buying stuff that you can't afford.” (62:30)

• Proposal: Refuse to Raise the Debt Ceiling
  The surest way to force fiscal discipline is to refuse to sign further debt ceiling increases, compelling Congress to immediately balance the budget via steep cuts.

  • “All Trump has to do is one simple thing. Don't sign the increase in the debt ceiling. ... Congress will have no choice if the President stands firm.” (64:45)

Notable Quotes & Memorable Moments

On Washington’s Legacy

• “But for George Washington, we wouldn't be a republic, we would be a monarchy.” (09:00)

On Historical Context of Slavery

• “You can't just judge a man by the fact that he had slaves ... The whole world had slaves. In fact, America was at the forefront of ending slavery.” (10:30)

On American Government

• “A republic, if you can keep it.” — referencing Benjamin Franklin (19:00)

On US Fiscal Health

• “We have to borrow another 1.2 trillion a year to pay the interest on what we've already borrowed. ... Just interest on the debt would give us a $1.2 trillion deficit.” (57:40)

On the Need for Hard Choices

• “We need leaders who care more about the country than about their own reelection. And since Trump can’t be reelected, it seems like a perfect time for him to put country above self.” (66:15)

Key Timestamps

• 00:02 — Opening and Washington's Birthday vs. President’s Day
• 05:00 — Commercialization and erosion of the holiday
• 09:00 — Washington’s character and his refusal to become king
• 12:54 — Differences between a republic and a democracy
• 19:00 — “A republic, if you can keep it”
• 32:12 — Recap of inflation/CPI and PPI data
• 34:00 — Gold and silver price action; market reaction to economic data
• 41:00 — Wall Street skepticism about gold mining stocks
• 47:00 — Tariffs on gold/silver; advice for investors
• 55:30 — Federal deficit reaches new highs
• 57:30 — Interest on the national debt outpacing Social Security
• 64:45 — Proposal for Trump on debt ceiling and the necessity of real cuts
• 66:15 — Call for leadership and prioritizing country over reelection

Summary & Takeaways

• Schiff vigorously defends the unique legacy of George Washington and calls for Americans to reclaim the true intent of Washington’s Birthday.
• He draws a clear distinction between a republic and a democracy and warns against popular misunderstandings of the American system.
• Schiff advocates for gold and silver investment, especially in anticipation of possible tariffs and amid persistent inflationary pressures.
• He provides a critical analysis of US fiscal policy, highlighting dangers from deficits and mounting debt, and proposes dramatic action (refusing to raise the debt ceiling) to force discipline.
• The episode features Schiff’s signature style: a blend of historical reverence, economic skepticism, and direct investment advice.

For listeners and readers:
This episode weaves history and current events to illustrate where America lost sight of foundational lessons—and why those lessons matter not just for holidays, but for economic survival. Whether you’re interested in the philosophy of government, worried about inflation and fiscal policy, or just want actionable investment ideas, Schiff’s passionate analysis gives plenty to digest.