During the lead up to the 2016 election, before traction was gained by much of anyone except Senators Ted Cruz (R-TX) and Rand Paul (R-KY), the idea of sound money was on the lips of the GOP, at least at a grassroots level. Once Donald Trump’s popularity rose, while he embraced a great many libertarian precepts, his stance on money is one that relies on a FIAT system that is going to destroy our economy no matter who is in office. Addressing this truth is long time libertarian icon, retired Texas legend, Ron Paul.
Paul is the hero who may well be president even today (if he had won a second term) if he had not been cheated by his own party in 2012 (much like Bernie Sanders (I-VT) was during the last cycle by his party). He has, in the past, warned that some within the government may wish to kill Mr. Trump. Now Paul is now sounding a different bell again. According to CNBC, he says that the stock market is not in danger only due to “President Donald Trump’s tariff threat.” He warns that “this is going to be a calamity” and the system has been “rigged.”
Here, we see that even Paul can be missing some of Trump’s skill, though not in total. Protecting U.S. jobs is something that has to happen and these tariffs are very needed. However, to do so sans the gold standard is a death sentence, something that the retired Texan has long admitted.
As correctly as ever, Ron Paul said that our real problem “stems from Federal Reserve policy and easy money,” a fact that becomes clearer and clearer each year.
“If the Fed continues on the things that they are sort of planning on doing, it’s going to be a calamity,” Paul warned on the show, Trading Nation. “I think we have a greater distortion and a financial danger sitting out there bigger than ever before.”
Forgetting that (while Mr. Trump is by far and away the best thing to happen to America in a generation) the president is wrong in many ways about FIAT currency is easy to do. However, the jubilance will fade when the economic prophecies of Ron Paul prove true, so it would be wise to address these concerns early on.
The Fed has made “critical errors” and has “rigged the economy,” the former Congressman warns. These woes “range from keeping interest rates low for too long, the rounds of quantitative easing and timing of selling its financial-crisis era assets.” Each problem listed in a guillotine blade looms over the heads of investors, and by proxy, the entire nation.
The ever-blooming budget deficit is also a problem that is not being addressed, according to Ron Paul. His son has also voiced the same concerns on a great number of occasions.
The elder Paul lamented, “Everything is just very burdened with debt, and there’s no stopping it.” He says investors should in no way be shocked if the stock market loses 50% of it’s worth, even.
Showing how former President Obama and his bailouts only made things much worse, he also stated, “The correction is going to be huge, and I don’t think anybody can predict. But I think this correction we had in ’08 and ’09 wasn’t allowed to really go its course and restore some sensibility to the market. I think that’ll be a mild correction to what could happen.”
This means that, while Donald Trump is certainly proving to be a good president, there is an elephant in the Oval Office that is being ignored. As Mr. Paul reminds everyone, sooner or later, that elephant is going to become quite enraged and want to be fed.