"The Fed Has Wreaked Havoc" Ron Paul Warns Markets' "Day Of Reckoning" Looms

Tyler Durden's picture

"I am utterly amazed at how the Federal Reserve can play havoc with the market," Ron Paul exclaimed on CNBC's "Futures Now" referring to Thursday's surge in stocks, warnings that he sees it as "being very unstable." As Paul rages, "the fallacy of economic planning" has created such a "horrendous bubble" in the bond market that it's only a matter of time before the bottom falls out. And when it does, it will lead to "stock market chaos."

 

 

While pinpointing a time for the inevitable endgame is impossible, Paul warns "after 35 years of a gigantic bull market in bonds, [the Fed] cannot reverse history and they cannot print money forever," and there "will be a day of reckoning" that will lead to a collapse in both the fixed income and equity markets.

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Dkizzle49855's picture

RP was the only hope; however that day has long passed. 

duo's picture

yup.  I have a couple of those "Hope for America" t-shirts from when I worked on his campaign.  Plan on pulling them out in 2018, after 2 years of Hillary and TPP.

Xibalba's picture

Judge the tree by it's fruit.  We'll see what Rand is made of. 

ZerOhead's picture

I hope we see that day. I suspect that privately he holds most of the same views as his father. Publicly however he has to say and do whatever is necessary to get in just like Davis (AKA Obama).

Boris Alatovkrap's picture

If attenuate volume, Boris is very like enjoy Ron Paul speak.

MonetaryApostate's picture

This shill doesn't explain how Trillions of dollars are wasted by the gov & how they have to go the bankers for loans for EVERYTHING....

Neither does he talk about the MIC....

Neither does he talk about how foreign aid is given to their real masters....

Thirtyseven's picture

O <====

 

On the left you'll notice any American politician's gaping butthole.

On the right you'll notice the penis of any member of AIPAC.

Xibalba's picture

the 'middle' is what the Clintons are made of. 

 

hermaphrodite\gay\assholes.

Normalcy Bias's picture

In 2018 that will likely be considered a 'subversive act' or hate speech felony.

JuliaS's picture

RP ran back in 1988 on an identical platform, but back then there was no internet and it was really easy for the MSM to drown him. They did it so well, I took me till 2003 to discover him while flipping though CSPAN. What I thought of as the most boring channel on the planet had this person who grabbed my attention within the first few seconds and I couldn't get enough of him since.

tc06rtw's picture

 
 … he is  sooo  2007 !

WTFUD's picture

Talk about a Transparent Secret Oxymoron Society.

You like this house? Sign, here, here and here and you'll get to look at the terms and conditions later.

Happily Dazed!

wareco's picture

Wow!  Let's take a look at this gem:  " IF UP, BUY SHORTS – Shorts are stock buys that you expect to go down."  Uh no. When shorting you sell stocks you suspect will go down, with the expectation you will be able to buy back at a lower price later, and pocket the spread.  To say "shorts are stock buys....." just shows your complete ignorance, but hey, thanks for sharing.

ted41776's picture

everything is awesome, buy all the things!!!! /sarc

Robot Traders Mom's picture

The only silver lining to Ron Paul not winning the election in 2012 is that he'll never be blamed for any of this. America never deserved him. 

Miffed Microbiologist's picture

I agree. I actually thought he may have been assassinated. We are beyond recovery now and his death would have been useless.

TPTB have marginalized him and painted him a fool. Someday I hope he will be vindicated.

Miffed

Consuelo's picture

He will.

 

If Mt. Rushmore is still standing a decade or 3 from now, and the real story of history becomes known, Ron Paul along with perhaps Patrick Henry, will replace Roosevelt and Lincoln as rightful heirs to that 'throne', instead of the slavish idolatry given to the aforementioned Tyrants.

 

Seal's picture

"The danger to America is not Barack Obama but a citizenry capable of entrusting a man like him with the Presidency. It will be far easier to limit and undo the follies of an Obama presidency than to restore the necessary common sense and good judgment to a depraved electorate willing to have such a man for their president.

The problem is much deeper and far more serious than Mr. Obama, who is a mere symptom of what ails America. Blaming the prince of the fools should not blind anyone to the vast confederacy of fools that made him their prince.

The Republic can survive a Barack Obama, who is, after all, merely a fool. It is less likely to survive a multitude of fools such as those who made him their president."

smacker's picture

I understand and agree with that quote.

Nevertheless I believe a lot of people would still get a great deal of pleasure and satisfaction from seeing him hanging from a lamp post.

deja's picture

Not surprising in this welfare state. They're going to vote for whoever promises to put the most of other peoples' money in their pockets.

LooseLee's picture

Yep! and most of 'them' trade on one of the financial exchanges.. I hope you're bright enough to figure out the meaning of what I said.....

Normalcy Bias's picture

I agree with the quote, but I think the real problem lies with who counts the votes, not who the citizenry actually votes for.

JuliaS's picture

JFK was quarter of a man RP is and we know what treatment he got for his 11-1-10 executive order and the decision to dismantle entire govt. agencies. If RP ever got elected, he wouldn't live through the inauguration ceremony.

Government needs you to pay taxes's picture

But grab all the guns, because murder happens.

wendigo's picture
wendigo (not verified) Jun 19, 2015 5:23 PM

Maybe Dr Paul was a genius, like Cicero, or maybe he was the ultimate in controlled opposition. I just don't know. Still, I agree with much of what he says, and given his advanced age probably has a better grasp of the material than I do. 

Stumpy4516's picture

Ron Paul is pimping for an investment firm already.  He is expert at his gimick.  Ronpaulmessag10.com

His calls for an audit of the FED are useless and part of his role as controlled opposition.  They will control the audit.  He is a distraction.

RP never goes after the jewish ownership of the FED or the dual passport holders in control of important positions.  He never touches Israel.  He has never (to my knowledge) discussed the jewish ownership of the media.

WTFUD's picture

'We German bourgeois do not want to be exploited by the English bourgeois in the way that you German proletarians are exploited by us and that we exploit one another.
We do not want to subject ourselves to the same laws of exchange value as those to which we subject you. We do not want any longer to recognise outside the country the economic laws which we recognise inside the country '.

K. Marx

MASTER OF UNIVERSE's picture

I'm past being utterly amazed at this fiasco and I have moved on to being stupefied instead. Initially, I thought they were propping things up with slush funds, and drug money. Now I know they are propping everything up on pure unadulterated nothingness, lies, God damned lies, and statistics. Dr. Paul should have gotten over his amazement by now, methinks. We all need to read Orwell more.

q99x2's picture

The coming reign of the Q99X2 on planet earth awaits all that shall conceive it. We will come rejoicing bringing in the thieves. Bringing in the theives. Bringing in the thieves.. We will come rejoicing bringing in the thieves. Some said the software got smart. Others said the politicians were given bad advice and were much more stupider than software to begin with. Google had other ideas and then it happened as it shall happen. Ron Paul wasn't happy but then again most old people can't really be defined as either happy or not. The oligarchs defeated themselves and were replaced by open source software.

buzzsaw99's picture

...created such a "horrendous bubble" in the bond market that it's only a matter of time before the bottom falls out. And when it does, it will lead to "stock market chaos."

now you see, this proves that he has a clue but also exhibits the circular logic so many use around here that it drives me looney. it goes like this:

bond market bubble --> stock market bubble--> bond market bust--> stock market bust

which would inevitably (in a free market anyway) reprice bonds EVEN HIGHER.

THEREFORE, ERGO, THERE IS NO BOND MARKET BUBBLE. The bubble is entirely in equities.

Thisson's picture

The bubble is in everything that fiat money can buy, because they've pushed down interest rates, and that is the "master price control"

Ultimately, the debt will go bad and be written off.  And the stocks will follow, because all of these companies have used cheap debt to finance things that are nonproductive.  That malinvestment will ultimately be revealed and the entire market will reprice itself.  You know...when we actually have a market again.

weburke's picture

his role is to play hero and explainer as we are led to devaluation after we lose reserve currency status to the imf. The nationalist dollar will come devalued. the pauls are totally slaves to the master families.

NihilistZero's picture

stock market bust  ...reprice bonds EVEN HIGHER. THEREFORE, ERGO, THERE IS NO BOND MARKET BUBBLE.

I'll take a REALLY layman stab at this.  Even in a flight to safety the bond market is unsustainable because so much of the debt is issued by the companies whose equities have been trashed.  Soverign and corporate debt would both see their yields increase substantially forcing the price of previous issued bonds to fall and the spiral into junk status for X% of the bond market would be complete.

No will someone with way more knowlege than me explain whether I'm even in the ballpark LOL :-)

MagicMoney's picture

Bonds will be repriced higher? Depends on the markets if they want to buy bonds at such higher prices. What if bond prices creash? Can the US federal government afford those repriced bonds that went down in price instead? That's the question. Indeed Ron Paul is correct that there has been 30+ year bull run in bonds. Prices don't go up forever and coincidentally, equity and credit ballooned at the same time. It's the Federal Reserve enabling the US government to borrow more and more in cheaper yields. We already seeing some evidence of treasury liquidity declining leading to more instability in bond prices. It's volatile by historic norms, that even the Treasury Secretary gets spooked.

smacker's picture

Ron Paul will (eventually) go down in history as one of the great people who actually understood how free markets work but found himself battling against lesser people with sinister agendas.

Galileo had the same problem with his belief in heliocentrism

Brokenarrow's picture

I have two fantasies:

 

I get to spend the weekend at the Four Seasons with Kate Upton drinking wine and driving her to New Jersey.

 

A Russian missle hitting the fed building during business hours.

 

Given a choice, I would take the latter and enjoy it as much or more than the first.

BringOnTheAsteroid's picture

I'd almost expect it. It'd be a nice easy way to cover up the greatest on-going criminal act in modern history. TPTB can then say, oh well, everything has been destroyed, there's nothing to investigate, let's move on. Just like WTC7.

aliki's picture

people ask me why I converted to basically a full-blown libertarian. I tell them "imagine the last 14+ years with Ron Paul in office instead of bush-obama ... Iraq doesn't happen and we have no debt. would u make that trade for what we have now???"

in my best dennis haysbert from the allstate commercial voice ... "silence"

HowardBeale's picture

I am stunningly fucking stupified by the sound of infinite sheep as they continue to talk about how "wrong" the "Federal" Reserve has been and is: they are not fucking wrong; they know exactly what they are doing; they are fucking criminals such as the planet has rarely--perhaps never in a financial context--seen; they have managed to steal the planet. And now that they and their cabal of once-removed criminals own everything, they have to find a way to continue to levitate the value; hence TPP. In my opinion, the heart of this top secret agenda is property value--as the lack of enforcement of immigration laws has always been; i.e., they--the property owners (every member of upper level government and their owners)--need, as they always have, more demand for physical things, real estate being the primary foundation of all their wealth; only unlimited immigration can create sufficient demand to maintain the "values" currently assigned.

 

This has been a long con for about 100 years now; the "Federal" Reserve is the con.

Monk's picture

The Fed is controlled by Wall Street.