Ron Paul: You Can’t Run a World Like This (Video)
Last month, Federal Reserve chair Janet Yellen made a bold prediction, saying an economic meltdown like the one we saw in 2008 will not likely happen again “in our lifetime,” because banks are “very much stronger.”
Ron Paul begs to differ.
In fact, during an interview on World Alternative Media, the former congressman said Yellen’s comments should probably make us more than a little nervous because, “central bankers are always wrong on their predictions – especially before a bust.”
What she says shouldn’t reassure anybody.”
Paul said we could see a major crash within a year. Or it could take longer. There’s really no way to predict the timing of an economic meltdown. But all of the elements are in place for a major crash.
You can know about a bust. You can know about a correction. You can know about all the sins overspending and printing up money. But there is a subjective element to when people give up confidence … When is the day going to come when people become more realistic and realize that we’re dealing with money that has no intrinsic value to it? There’s too much debt, too much malinvestment, and it will come to an end. Something that’s too good to believe usually is, and it usually ends. So, that’s what we have to anticipate. But one thing for sure, we’re getting closer every day, and it may come this year, but it might take another year or two.”
Paul noted that Americans tend to feel confident that everything will be OK in the long run. After all, the US has the largest economy in the world. The US dollar serves as the world’s reserve currency. America has a mighty military. But Paul says all of that isn’t enough.
The real test is can it sustain unbelievable deficit financing and the accumulation of debt, and it can’t. You can’t run a world like this.”
One thing for sure – when a government embarks on deficit financing and then monetizing the debt the value of commodities, especially gold and silver, generally goes up. I recognized this in 1971 and started buying gold at that time. Some people made fun of me, and they still do. They say, ‘Oh yeah! You’re missing out on the stock market boom.’ But you know, if you look at gold at $35 an ounce and now around $1,250 an ounce, it wasn’t the worst form of protection. And I think that will continue. It won’t be a tragedy if you get protected and the calamity isn’t quite as bad as you think.”
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