Contact us
CALL US NOW 1-888-GOLD-160
(1-888-465-3160)

Ron Paul on the Stock Market: Delusions and the Madness of Crowds (Video)

  by    0   0

Stock markets continue to surge higher on a seemingly endless upward trajectory. On Tuesday, the Dow Jones crossed the 23,000 mark for a time and closed just below that threshold at 22,997.

It almost seems like this can go on forever, but Ron Paul said it would eventually come to an end during an interview on CNBC Futures Now last week. He said it reminds him of “delusions and the madness of crowds.”

Of course, as Paul pointed out, even though we don’t know exactly when it will eventually crash, the market can’t go up forever. And Paul offered a sobering warning.

“My position is the longer it lasts, the bigger the bust.”

So what’s really behind the meteoric rise in stocks? Paul echoed what Peter Schiff and other contrarians have said – it’s a big bubble pumped up by central bank intervention.

There’s sure a lot of money out there. And there sure has been a lot of monetary inflation, and it’s looking where to go, and it’s been in bonds, in stocks, Bitcoin, real estate and all these other things. Someday, it’s going to go into the CRB, in commodities, in the price indexes and that’s when people will get nervous. It will end. It always does.”

The host asked Paul if he thought an increased pace of Federal Reserve rate hikes could pop the bubble. Paul said he thinks that’s why the central bank has been so hesitant to normalize.

I think they’re in a quandary. They’re in a total dilemma. I think what they’re doing is totally unmanageable. And everything they do contributes to malinvestment and distortion. And that’s because they control interest rates. If you control interest rates – keep them artificially low – everything is going to be distorted to some degree.”

Paul went on to say the world is in a place it’s never been before – totally engulfed by fiat currency. That threatens the dollar system the world economy is built on.

The dollar standard, I think, is under threat, because someday something else is going to replace it. Not tomorrow or the next day – it isn’t so much that something will come up that will be so much better as much as there will be a day when people will lose confidence in the dollar. And when you look at foreign policy events and some of the other things going on, I think we’re very vulnerable.”

Paul was reluctant to put a number on how far the markets could fall, but he said he wouldn’t be surprised by a drop of 50%.

I wouldn’t be totally shocked that it would go down that low.”

Get Peter Schiff’s latest gold market analysis – click here for a free subscription to his exclusive monthly Gold Videocast.
Interested in learning how to buy gold and buy silver?
Call 1-888-GOLD-160 and speak with a Precious Metals Specialist today!


Related Posts

Peter Schiff: We’re Ripe for a 1987-Style Crash (Video)

Stock markets have settled down after an awful couple of weeks earlier this month.  On Feb. 5, the Dow Jones suffered its largest-ever drop in terms of points. It was down 1,600 at one point and ultimately lost 1,175.21 points, a 4.6% drop that day. At one point during that week, the Dow was off […]

READ MORE →

Jim Rogers Predicts Worst Bear Market in Our Lifetime

Investor Jim Rogers has seen a lot in 75 years. So when he starts talking about the worst bear market in our lifetime, we probably ought to sit up and take notice. And that’s exactly what Rogers said in a recent phone interview with Bloomberg. When we have a bear market again, and we are […]

READ MORE →

Peter Schiff: Republicans Offer Free Lunch Then Stick Us With the Bill (Video)

It was interesting watching people on the left side of the political spectrum become practically giddy as the stock market tanked on Monday. It seems they couldn’t wait to pin the collapse on Donald Trump. Of course, the president has set himself up to take the fall by constantly taking credit for this bubble economy. […]

READ MORE →

Whistling Past the Graveyard: Peter Schiff Talks Stock Market and the Economy (Video)

The stock market has continued its upward trajectory through the first two weeks of the new year. In fact, the market has only seen one down day since Jan. 1. Peter Schiff appeared on The Street and opened things up with a bang, calling investors “Oblivious.” Peter reiterated a message he’s been preaching on his […]

READ MORE →

What Has the Age of Quantitative Easing Gotten Us? Ron Paul Explains (Video)

When the housing bubble popped in 2007, the Federal Reserve went to work to reinflate the bubble. It quickly pushed interest rates to zero, and in December 2008, the Fed launched the first of three rounds of quantitative easing. The virtual money printing lasted for five years. So, what did we ultimately get for the […]

READ MORE →

Comments are closed.

Free Newsletter & Notification of Special Deals
RSS Feed
Like Us on Facebook
Add Us on Twitter
Visit Us
LINKEDIN
YouTube Channel
YouTube Channel
Google+
Google+
Call Now