A former congressman from Texas, Dr. Ron Paul, says that the United States won’t be the exception when negative interest rates crush the economy. Dr. Paul is warning negative interest rates are coming, and the Federal Reserve cannot stop it.
“We will join the rest of them and go to total negative rates in hopes that that will be the solution,” Dr. Paul told CNBC’s “Futures Now” on Thursday. “We’ve never had as many currencies in negative interest rates. $17 trillion worth of bonds [are] in negative interest rates. It’s never existed before. And, that’s a bubble. So, we’re in the biggest bond bubble in history, and it’s going to burst.”
Dr. Paul, who is a former presidential candidate and vocal libertarian is well-known for his economic and stock market bubble warnings as well as his stance on small or non-existent government. He says that the Federal Reserve’s policies are powerless in this current bubble environment and that this week’s Fed meeting will not provide any kind of relief to Americans. He also says cutting interest rates again will not be the answer.
“You can’t predict exactly where the creation of credit goes,” said Dr. Paul. “We have a ton of inflation with all that QE [quantitative easing]. And, every time you lower interest rates below market levels and create new credit, that’s a bubble.”
Dr. Paul admits that it’s impossible to predict when the markets will collapse and the bubbles will all burst. “You don’t know this precise time. But you know it can happen,” he said. “How do you sell a bond that pays a negative rate? Who’s going to jump up and down?”
And the U.S. is only going to be protected from an economic depression temporarily. The stock market will only insulate for so long before it’ll take hits too. Dr. Paul says central banks, which drastically lower interest rates destroy the pricing mechanism in financial markets, can’t stop the ultimate collapse.
“I don’t think anything even existed coming close to what we’re facing today,” Paul said.
Dr. Ron Paul is the author of the book, End The Fed. This book is a provocative and controversial treatise that argues we cannot actually fix the broken economy without discussing the 800-lb gorilla in the room: the Federal Reserve.
Most people think of the Fed as an indispensable institution without which the country’s economy could not properly function. But in End the Fed, Ron Paul draws on American history, economics, and fascinating stories from his own long political life to argue that the Fed is both corrupt and unconstitutional. It is inflating currency today at nearly a Weimar or Zimbabwe level, a practice that threatens to put us into an inflationary depression where $100 bills are worthless. What most people don’t realize is that the Fed — created by the Morgans and Rockefellers at a private club off the coast of Georgia — is actually working against their own personal interests. Congressman Paul’s urgent appeal to all citizens and officials tells us where we went wrong and what we need to do fix America’s economic policy for future generations.
We need negative rates and a war with Iran and China. Both of these will bring on an economic boom like never before. Just as with WWII we will benefit by crushing Chinese production and seizing Iranian and Venezuelan oil.
And we should do it now before China gets stronger,
Frank, you need to change your surname from “Thoughts” to “RavingsofaLunatic”
I read somewhere recently that oil is not needed and that free electricity exists in the air everywhere. This truth obviously hidden to arrive at the total tyranny in effect across the Earth.
Yep, Tesla’s energy device that pulled positive and negative ions out of the air and converted them to usable household currant. Every house could have free, clean energy. Westinghouse had backed the experiments, so he had all plans destroyed and was quoted as saying Nobody milks the cow for free.
The U.S. Military hasn’t won a war in 74 years. Little North Vietnam handed it ass to them. And Frank Thoughts want to go to war with China. It’s hilarious.
Tell you what Frank, I’ll give you an AR-15, 5,000 rounds of ammo and a plane ticket to China. You lead the charge.
America hasn’t been in a Constitutional legal war in the last 74 years. We have been in political driven actions, that have been for the most part been politically lost.
So technically we haven’t lost any wars.
Democrats for the most part start out these “Wars” and after they kill and maim enough people lose interest and pull the rug out.
I agree no more un-declared wars! We do have to honor our treaty responsibilities such as Korea, Or take short focused actions such as the Mayaguez, but no more Vietnam, Afghanistan, or Iraq “Wars”.
I agree. If we need to go to war we need to do it.
Can anyone imagine Iran with no electric grid? Then if they did not stop their foolishness take out their water supply.
Yep, ol Frank wants that,,,
The Chinese and Koreans are such a brainwashed goose stepping buncha nuts it wont be pretty no matter what, they are nuts. We need to stay the hell away from engaging them, i doubt they really want that either, more likely than not that dragon does not have a deathwish but is stocked full of guys n gals more than ready to die for their country than i imagine any other
The only reason the US hasn’t won a war in 74 years is due to the pussies we have in congress and the US. If we had a war similar to what went on in WWII our pansies in the US would have a mental breakdown.
The reason we have not won a war in 74 years is that the goal is not to win wars. If we won one, accidentally I mean, the military would just have to go to all the trouble to start another one.
The great object is to keep the gravy train going. Smedley Butler was right – War is a Racket and Eisenhower warned us. Nobody bothered to listen.
So true! The goal is power and the “self licking ice cream” of revenue. The military industrial complex won the world at the end of WWII. Nobody has been powerful enough to upend that since. China is going to try but China will be shut down in a two-prong attack: we learned from history how to do it. First, choke China by making oil expensive and then bomb their production facilities off line. When the CCP are taken out of power re-boot China but only on the American platform of rules and software like we did with Germany and Japan. Then let it rip and reap the wealth.
If the USA killed every person in North Vietnam they still couldn’t “win” in Vietnam. South Vietnam did not exist as an organic country but rather a creation and recreation of the US. There were instances when the US military witnessed South Vietnamese units fighting each other. Invading North Vietnam was debated and decided to be very counterproductive taking MacArthurs advice about China and its “bottomless pit of Asian manpower”. The war was unwindable and the US came to that conclusion in late 1967 pre Tet 68.
Actually North Vietnam did not hand US its ass. The National Liberation Front political and Viet Cong were that couldn’t be defeated. Even legendary Marine general Louis Walt said, ” I did not understand this war or how to win it”. Afghanistan is no different. When a pile of armed civilians don’t want to be controlled they can’t be controlled. The British seen it in Ireland with Sin Fein and the IRA. Major armies are far easier to defeat than an indigenous guerrilla force who’s members appear and disappear at will.
History tells us you can win, but it is a brutality Americans aren’t willing to do.
Kill them all, every last one of that “tribe”.
We don’t do that so we lose. At least kill all
the males of a tribe, to the youngest baby.
Spread the women around and treat them fairly.
I completely disagree. “War is politics by other means”. Victory in Vietnam wasn’t taking the land but rather installing a non communist government supported by the indigenous population. That was unachievable. South Vietnam wasn’t organic. The 1954 unification election was stopped by the US because Ho Chi Minh would have been was the hands down winner. Several governments failed in the created South Vietnam, none having popular support. The hierarchy was Roman Catholic the peasants in the countryside Buddhist or atheist. The “National Liberation Front” the Sin Fein for Vietnam accepted anyone as long as they weren’t supporters of SVN which was ripe with corruption and became even more so as US dollars flooded the country.
Killing every man woman and child in both North and South Vietnam, insane but obviously possible still wasn’t victory.
If the Emperor of Japan told his ultra disciplined and loyal population, “Fight to the death”, rather than the sane “surrender” the civilian population would have fought for decades. Fighting civilians would have necessitated brutality which would have hardened them likely increasing their resolve. The Post War (whenever that would be, if ever) political dynamics would have been entirely different. Generations of US troops, having to literally fight children would have had emotional scarring that they were spared. I thank the Emperor of Japan, Hirohito, for his decision and MacArthur’s decision to keep him “symbolically” in power. The political rebuilding of Japan was MacArthur’s crowning achievement as I question much of his military decisions outside of Inchon. He was highly overrated.
Oops, last but not least, Japan was an Island.
^^^^ He’s right you know^^^^
If only negative interest rates paid the debtor to take on debt instead of the other way around. When you bought a house you would be getting all that interest paid to you instead of the banks taking it on the front end of the loan. Of course we know that would never happen.
Negative interest rates or where you pay the bank to keep your money
WWIII and America is forced to send its 53 genders into babble. mazel tov cocktail and mayn bobes crappoli.