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

Ron Paul: We Have the Biggest Bubble in the History of Mankind.

  by    0   0

The mainstream is giddy about the “booming economy.” We have rising stock markets, continued job creation and solid GDP growth. But Ron Paul recently appeared on CNBC Futures Now and threw a big bucket of cold water on the mainstream narrative. He said we are barreling toward a recession. 

Ron said he thinks a big crash is coming. He’s not saying it will necessarily happen in the next six months, but the groundwork is already in place.

The recession is set in place by the inflation and the distortion of interest rates which have been going on now for too long – historically larger than ever before. So there is no avoidance of a correction.”

Ron said that the central bankers and politicians never let the debt and malinvestment cleanse itself, so we just keep blowing up bigger bubbles. The result?

We have the biggest bubble in the history of mankind.”

Ron picked up on one of the major themes we’ve been harping on – the economy is built on debt. He said the only thing the government can seem to do is “print money and spend money and teach everyone to ignore the deficit.”

Republicans and Democrats are alike. They don’t concern themselves with deficits and it just can’t work. It’s never worked before.”

Of course, there are always naysayers. Ron has been talking about the massive debt and bubbles for years. He was asked what makes him think it’s going to all come unraveled now.

When you say ‘now,’ I don’t put a date on anything because markets will decide it, governments will decide it, geopolitical events will decide it. Who knows what will do it? But it will come and the bubble is bigger than ever before.”

As Ron put it, over the long term, you can’t disprove fundamentals.

If you run up debt, and print money, and distort interest rates, you get distortions and they have to be corrected. You can’t do that forever. That was what the housing bubble was all about, and we have a lot of that in there now.”

So, how bad is it going to be?

Well, because it’s the biggest bubble ever, I think it’s going to be very bad. I think you’re going to see payback. People are going to have to pay for living beyond our means.”

Ron said ultimately, history tells us we’re heading for disaster.

It can be pretty well validated by looking at monetary history that when you inflate the currency, distort interest rates and live beyond your means and spend too much, there has to be an adjustment. But you don’t know exactly when. But I think we’re getting awfully close. I’d be surprised if you don’t have everybody agreeing with what I’m saying next year sometime.”

WhyBuyGoldNowBanner.070815.590

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

The Credit Risks Hiding Behind the Averages (Video)

As we reported last week, consumer debt continues to break records month after month. Americans owe over $4.3 trillion dollars in revolving debt (primarily credit cards), student loans and auto loans. When you factor in mortgages, the number climbs to $13.54 trillion. That figure was $869 billion higher than the previous peak of $12.68 trillion […]

READ MORE →

Jim Grant on the Ignorance That Knows Not It Is Ignorant (Video)

Jim Grant recently appeared on the Santelli Exchange on CNBC and the conversation quickly turned to this notion that “intellectuals” have the wherewithal to run the economy. Friday Gold Wrap host Mike Maharrey recently explained two very important economic principles that make it impossible for central planners to ever truly succeed. As he put it, […]

READ MORE →

Peter Schiff: America’s Economic Problems Are Self-Inflicted (Video)

Peter Schiff has been talking a lot about the prospects of a trade deal lately. His point: an end to the trade war isn’t going to heal America’s economic wounds. And those wounds? Well, they’re self-inflicted. Peter appeared on RT again on Monday (March 4) to hammer home this point. Related

READ MORE →

Bear vs. Bull: Peter Schiff Debates Louis Navellier (Video)

The stock market has rebounded nicely since those dark days of December leading many analysts to believe precipitous nosedive was nothing but a bull market correction. But Peter Schiff begs to differ. He’s been saying that the rally in stock since the Powell Pause is really a bear market correction. Furthermore, Peter says an upcoming […]

READ MORE →

The Greatest Deal in the History of Deals? Or Much Ado About Nothing? (Video)

The price of gold dropped last week and stock markets continued to rally. One of the driving factors was optimism that the trade war may be close to its end. As a CNBC report put it, “investors opted for riskier assets on hopes of a thaw in a trade dispute between the United States and […]

READ MORE →

Comments are closed.

Call Now