"Biggest Bubble in the History of Mankind" Is "Going To Burst"

“Biggest Bubble in the History of Mankind” Is “Going To Burst” – Ron Paul

18, July

by Keris Lahiff via CNBC

This market is in the “biggest bubble in the history of mankind,” Ron Paul told CNBC’s “Futures Now” last Thursday.

Access CNBC video here

“I see trouble ahead, and it originates with too much debt, too much spending,” Paul said.

Paul belongs to the Libertarian Party, a faction that emphasizes constrained government spending. He sees federal spending and monetary policy as dual forces inflating a market bubble.

“The Congress spending and the Federal Reserve manipulation of monetary policy and interest rates — debt is too big, the current account is in bad shape, foreign debt is bad and it’s not going to change,” he said.

Paul isn’t alone in his critique. A number of politicians have voiced concern over ballooning deficits, including current House Speaker Paul Ryan, who raised a warning on the nation’s debt in 2012.

The Congressional Budget Office estimates that federal deficits will average $1.2 trillion a year from 2019 to 2028, according to its April economic outlook. Its 2018 deficit estimates rose by $242 billion over previous forecasts made in June 2017. The federal agency said the revision was mainly owing to lower projected revenues tied to tax reform.

“We have a president who likes to spend. He is not concerned about the deficit,” said Paul.

To Paul the decision-making arm of the Fed is equally at fault in creating a market bubble.

“The Fed will keep inflating, and that distorts things,” Paul continued. “Now they’re trying to unwind their balance sheet. I don’t think they’re going to get real far on that.”

The Fed is more than two years into its rate-hiking cycle. In conjunction with rate hikes, the Fed is also unloading assets from its balance sheet, which expanded to $4.5 trillion during its post-financial crisis quantitative-easing program.

Paul is not confident much will change to divert from the disaster he predicts.

“The government will keep spending, and the Fed will keep inflating, and that distorts things,” said Paul. “When you get into a situation like this, the debt has to be eliminated. You have to liquidate the debt and the malinvestment.”

Paul reiterated his call on Thursday for a potential 50 percent sell-off on the stock market.

Excerpt from This is the ‘biggest bubble in the history of mankind and it’s going to burst,’ Ron Paul says (CNBC)

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Gold Prices (LBMA AM)

17 Jul: USD 1,243.65, GBP 938.46 & EUR 1,059.96 per ounce
16 Jul: USD 1,244.90, GBP 938.41 & EUR 1,063.52 per ounce
13 Jul: USD 1,240.50, GBP 945.14 & EUR 1,066.83 per ounce
12 Jul: USD 1,244.85, GBP 942.10 & EUR 1,065.97 per ounce
11 Jul: USD 1,250.00, GBP 943.63 & EUR 1,068.38 per ounce
10 Jul: USD 1,253.70, GBP 946.17 & EUR 1,069.41 per ounce

Silver Prices (LBMA)

17 Jul: USD 15.77, GBP 11.91 & EUR 13.46 per ounce
16 Jul: USD 15.81, GBP 11.90 & EUR 13.49 per ounce
13 Jul: USD 15.81, GBP 12.04 & EUR 13.60 per ounce
12 Jul: USD 15.84, GBP 12.00 & EUR 13.58 per ounce
11 Jul: USD 15.92, GBP 12.02 & EUR 13.59 per ounce
10 Jul: USD 15.93, GBP 12.04 & EUR 13.61 per ounce

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