Another Wall Street Bust Awaits
Will you be sucked down to Hell again?
- I disagree with Ron Paul on many issues. But he is dead on regarding the current Federal Reserve created financial bubble.
- The Fed is furiously pumping up Wall Street stocks and funding the wet-dream Big Government spending fantasies of both parties.
- But in the end all bubbles pop.
(RT News) - As the stock market surged close to all-time highs and the Federal Reserve hinted it wouldn't raise interest rates, former Rep. Ron Paul (R-Texas) reiterated his fears that the US economy is not sustainable, predicting a huge crash in the near future.
“I look at the markets as being unstable, which means some days they go up a lot and some days they go down rapidly, but they don’t advance very far when you look at real growth,” Paul said on CNBC’s ‘Futures Now’ on Thursday. “The [Federal Reserve] won’t allow this market to drop. This is why I’ve always leaned toward the assumption that the Fed is never going to raise interest rates deliberately. I think the market will raise interest rates.”
“And we live in a chaotic world that’s totally unreal ‒ people don’t depend on savings for their capital, they depend on the Fed. And the Fed says the slightest thing about, ‘Oh, maybe we shouldn’t print so much money ‘til next week’, you know, all kinds of things can happen,” he added.
|In the olden days U.S. money was backed by gold.|
By abolishing a gold backed dollar the politicians were
free to print all the money needed to buy their
re-election every two years.
“Eventually the value of money, the purchasing power of money will require that interest rates go up. But that is the game they’re playing, they fool a lot of people and as long as people believe the majority of the players still believe this, they’ll still be involved and they’re gonna make a lot of money.”
One of the things that Paul is adamant will happen is that the stock market will crash, bringing with it the entire US ‒ and possibly world ‒ economy with it.
“It could be tomorrow, it could be a month, it could be a couple years because it all depends on a psychological acceptance of the system,” he said. “I don’t think there’s any way to know what the time is but, you know, after 35 years of a gigantic bull market in bonds, believe me, they cannot reverse history. You cannot print money forever and deceive the markets forever."
“Eventually, the markets will rule, and that’s only a question of when that will happen. And, of course, I run a little bit scared because I think there will be a day of reckoning,” Paul added.
Paul blames the “fallacy of economic planning through monetary policy” for the instability in the economy.
“You cannot have it, it’s artificial, it has nothing to do with freedom and free markets and capitalism and sound money, but it’s all artificial, it’s all political and that is why we are so vulnerable,” he said. “So we’re all on the verge ‒ the country, the world is on the verge of looking more like Detroit and Greece than anything else. But [in] time that will happen ‒ it’s probably not going to happen tomorrow or next month, but it will happen because this is unsustainable.”
Paul said he thinks the market correction is “going to be a lot more than anybody anticipates.”
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|Back when the GOP was Conservative.|
In the 1896 election the Republican Party ran on a platform of balanced budgets and sound money backed by gold. Now with gold removed from the money supply the GOP spends money and racks up debt faster than the wildest Leftist FDR New Dealer.