What does Ron Paul have to say about the stock market bubble?
Former congressman Dr. Ron Paul says we are in the midst of “the biggest bubble in the history of mankind” and a correction in inevitable. In fact, Paul has said that a 50 percent stock market sell-off should not be a surprise.
“If you run up debt, print money, and distort interest rates you get distortions and distortions have to be corrected.”
“You can’t do that forever. That is what the housing bubble was all about.”
Those of us concerned about debts and deficits, about honest money and Fed money printing know to listen when Ron Paul speaks. His remarks in Congress about the housing bubble in its building stages proved to be like a play-by-play description of the tragic events that eventually played out.
Now Dr. Paul is warning us again about the stock market bubble. “We have the biggest bubble in the history of mankind. The bubble is bigger than ever before. There’s no avoidance of a correction. The only thing that makes a difference is how to handle it.”
“Republicans and Democrats are alike, they don’t concern themselves about deficits. The only thing that they can do is print money and spend money and teach everybody to ignore the deficits,” he said.
“Because it’s the biggest bubble ever, I think its going to be very bad.”
“We’re getting awfully close. I’d be surprised if you don’t have everybody agreeing with what I’m saying next year some time,” said Paul.
Dr Paul is also warning of a likely surge in oil prices to over $100 a barrel.
Oil has been climbing more or less continuously since early in 2016. Prices have almost tripled since then. Remember that spiking oil prices in 2008 were a prelude to the stock market calamity that unfolded later that year. Like higher interest rates, rising oil prices are like a tax, a depressant on the economy, on corporate profits, and on stock prices.
What can informed people do to protect themselves from a brutal stock market correction? We recommend our clients buy gold.
Dr. Paul agrees. Earlier this year Dr. Paul told a CNBC interviewer, “”I personally would be better off if I did buy a little bit more gold.”
As always, I encourage you to speak with your broker at RME for more market updates. Expert brokers are available Monday-Friday from 9 AM- 5 PM or by special appointment after hours. Call today at 602-955-6500 or toll-free at 877-354-4040.