Ron Paul Warns "50% Stock Market Plunge Conceivable... And It Won't Be Trump's Fault"

Tyler Durden's picture

The former Republican Congressman from Texas believes escalating dysfunction in Washington will create even more pain for Wall Street.

Speaking on CNBC's Futures Now, Ron Paul warned:

"A 50 percent pullback is conceivable...I don't believe it's ten years off. I don't even believe it's a year off. "

Paul noted that there's a lot of chaos in Washington right now, with an "unpredictable president" and those who are inclined to "tear him apart" but if the market takes that big of a tumble, he doesn't see it as Trump's fault.

"It's all man-made. It's not the fault of Donald Trump in the last week.

 

If the market crashes tomorrow and we have a great depression, he didn't do it in six months.

 

It took more like six or ten years to cause all these problems that we're facing."

Paul previously argued Wall Street is overestimating the strength of the economy, and the Federal Reserve kept interest rates too low for too long.

He said the situation for stocks could turn ugly as soon as October.

"I see the foundation of our system built on sand, and a big wind comes along to blow it down."

 

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Greenspazm's picture

He looks like the guy in the hotel room in the last scene of Kubrick's "2001".

Croesus's picture

It won't be Trump's fault, but the Jews Media will surely pin it on him.

The collapse will be conveniently tied-in with the oppression of All-Things-White that's happening now. "If only we had more minorities in charge"...

Mark my words Chosenites, your day is coming, as sure as the Sun rises.

Your whole problem, is that your genetic disposition does not allow for you to ever "quit while you're ahead". It is your Achilles' Heel, and the sole reason why you always get kicked-out of every country you ever take over. If you want to find the source of "Anti-semitism", look no further than your own religion. You make the mistake of thinking that you're the only smart ones in the room, and everybody else is here for you to exploit, manipulate, cheat, and lie to.

neversink's picture

I thought you would say it is the Jew's fault, now it's the Jewish media, but most of the CEOs of the media houses, like the banks, are not Jewish!!! 

Go back to the gutter you were born in, asshole!!!!

Mr Poopra's picture

Why are Hillary and Soros not in prison yet?  Why is Seth Rich's killer not caught?  Why is Pizzagate not being investigated?  Why is that slimey zionist Kushner staying while Bannon is out.  What the fuck is going on?

 

If Trump betrays his base he's going to wish he never won.  They will turn on him with "Fire and Fury like the world has never seen before".

 

I don't give a fuck about the wall or odumbocare, i want him to dismantle this international Satanist pedophile crime syndicate of globalist bankster fucks.  Doesn't he get it by now?  Do your fucking job or get the fuck out.

Son of Thor's picture

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Croesus's picture

@ Neversink:

Awwe, now don't get your tefillins in a twist.

You all do this shit to yourselves, and it's one of the great mysteries of the Universe.

If you stopped thinking you were Special, and stopped thinking your job was to rip-off everyone else, your kind wouldn't have the same problem, over and over and over again, for Thousands of years.

I'm not blaming you personally, but it is fact that Judaism is completely alien to the core beliefs of the rest of the world.

As such, it is inevitable that "Jews gotta Jew", and non-Jews will react as they always have in the past.

Funny how Mike Signer recently called for more gun control laws...despite the fact that guns weren't even a factor in the upheaval that HE directly enabled in Charlottesville.

A prime example of:

"Jew causes problem between non-Jews, then offers solution preferred by Jews".

Why are you so worried about our guns, Chosenite? Could it be, that you know those guns will be pointing at you, soon?

Croesus's picture

Oy vey, neversink will get right on that.

In other news "Blowjobs from the Chosen Cocksuckers" are causing herpes among babies in Lakewood:

http://www.app.com/story/news/local/new-jersey/2017/08/17/lakewood-babie...

veritas semper vinces's picture

Solid logic. Teutonic? I'm curious.

Gordon_Gekko's picture

Croesus, one of the few sane ones left.

Croesus's picture

Right back at you, my friend!

ThE SoLuTiOn Is DeBt FrEe MoNeY cReAtIoNx's picture

Exactly correct. The Zionist satanic paedophiles that run this crazy blue marble always get over confident... but they are nearly impossible to eradicate. The Romans did a pretty good job but here we are about 2000 years later and the filth has risen to the top once again...

Unfortunately there is not a final solution as most jews are just as brainwashed as the goyim and are also victims...It is the satanic paedophile Rothschild Zionist families among them and their global blackmail ring of child abuse that must be defeated... 

But it appears they are survivors...like cockroaches really... Maybe after another pogram we can get a few centuries of peace before they start again...

MadHatt's picture

Debt based currency will always fail.

But, who gets the blame will always change. 

HRClinton's picture

And (((who))) gets rich also remains the same. 

Erek's picture

No matter what happens, Trump will be the "Patsy" for all the stupid fucks before him.

Omen IV's picture

Erik wise up - "they" were not stupid fucks

We are moving with a predetermined outcome

Yours is not to reason why - yours is just to do or die !

goldoverbtc's picture

It isn't so hard to predict something like this is coming when the stock market hasnt corrected in 9 years.  the stock market is at an all time high, it has to go down eventually.

 

www.escapeamazon.com

insanelysane's picture

Wrong!  A free market has to correct eventually.  This market doesn't have to correct ever.  It will only correct when there are enough muppets invested so they get fleeced just like in the great market failure of 1929.  The rich cashed out hi and then bought low.  It was a great victory for the few.  The problem at the moment is that there aren't enough muppets on board to make it worth while.

CRM114's picture

Furthermore, the rich don't have control of all the market influences - a Chinese crash of some sort on its own could trigger the drop, and there's no telling when that particular jenga tower will topple.

Beam Me Up Scotty's picture

Exactly.  This isn't a free market stock market.  The Fed has the printing press, and the freedom to print as much money as they want---both physical cash and digital currency.  They could make the Dow 100,000 tomorrow morning if they wanted to.  When no one has the ability to audit the Fed to see how much "money" they have REALLY created, then the stawk market is nothing but a number on a peice of paper.

Pollygotacracker's picture

The Fed will be powerless to prevent a crash. Interest rates are already very low, so there isn't any thing they can do there. And when investors are moving into CASH, (to preserve their capital), it won't help to print more CASH. There will be a rotation, and there is nothing the Fed will be able to do about it. Bring it on. 

Beam Me Up Scotty's picture

They can print the CASH to buy all of those assets that those investors are selling.  And guess what??  The STAWK MARKET goes higher!!  When you have infinite dollars at your disposal, you can control the price of EVERYTHING in dollar terms.  What don't you understand about that??

JBPeebles's picture

I read that the actual supply of cash in the U.S. was only $800 billion. The other half is abroad.

So if people actually have to get cash, they're in trouble. We know that as few as 3% of depositors asking for their money can wipe our bank reserves,

Obviously if the bank is liable for the customers' deposits, they need to offer them when demanded. If the liable bank can simply write a check, then it can remove the need for cash to settle the customer's account and simply pawn off the problem to whichever bank "cashes" the customer's return of deposit monies.

As long as all participating banks accept each other's IOU, the absence of cash isn't a problem.

For those with investing experience, you know cash means money market but the two aren't the same. In general, money market mutual funds hold short-term IOUs. The actual physical cash could never be enough to meet redemptions, so the IOUs must continually be passed on.

Keeping cash is too risky but gold and silver stored offsite can be secure. Like physical cash, these are tangible--physical stores of value whose "price" may vary. Again we assume that any IOU is redeemable in cash but it isn't if more than 3% is demanded "back"--if it ever went there in physical form at all.

Smoke and mirrors. This is the existential fraud that backs the fiat monetary system--just keep issuing more in the digital space. Nothing is real. Balance sheet entries exist only in digital form.

Of course holders of finite items like gold are just waiting for the massive pile of digital only-fiat to move out of the derivative-based market into tangibles and the ratio (price) of infinite fiat to finite tangible will rapidly grow so much so that the physical supply will be unavailable. Hence the stream of interventions by the Fed.

Muppet's picture

50% agreed Mr. Paul.  Sadly, it will be blamed on Trump.    I've been waiting for years.

 

Always the when.

Ben A Drill's picture

S&P 500 in three digits.

alexcojones's picture

Dr Ron Paul: Conscience of American patriots everywhere.

God Bless You, Ron

Rainman's picture

And God bless Ross Perot .. 1992, when debt was "only" $4 trillion.

"Debt is like a crazy aunt we keep down in the basement. All the neighbors know she’s there, but nobody wants to talk about her. "
 

AlphaSeraph's picture

Amazing to think that if the S&P500 drops by 50% to roughly 1200 that's still nearly double from the absolutely bottom (666) of the previous crash only 9 years earlier.

 

Fucking counterfitting parasites. 

marcel tjoeng's picture

 

Faux economics.

"the Federal Reserve kept interest rates too low for too long",

the FED defines the interest rate, there is no 'market equilibrium'.

If the economy tanks, it is also because the FED lets this happen.

Read Warren Mosler, it's al fake macro-economics.

Interest rates might as well be 0% and savers given a tax brake at par with the inflation rate,

there wouldn't be anything unfair abot that would there now.

east of eden's picture

The phoney inflation rate or the real inflation rate?

taketheredpill's picture

"It took more like six or ten years to cause all these problems that we're facing."

 

Look at when the debt levels really took off in late early 90's.  So more like 20+ years in the making.


alexcojones's picture

Look at the GSR. 75 -1.

Seems to me like a good time to buy that AG

Greekziqrius's picture

I am getting tired of Ron Paul, Paul Craig Roberts, Marc Faber, and the retired green beret.

yellowsub's picture

Everyone's right sooner or later...

DEMIZEN's picture

BS. keep buying

onthedeschutes's picture

More FED fuckery is also conceivable.

CRM114's picture

More FED fuckwittery is also conceivable

FTFY ;)

JLee2027's picture

With phony money, some algo can just keep buying stock and dumping it into the Feds account.  That's how China prevented a meltdown on their exachange over a year ago.

 

Therefore, I think a crash is unlikely.  Extremely unlikely.

 

It's all fake these days. No real markets exist.

 

techpriest's picture

Home prices are finally coming off peak insanity in Dallas too - more "investment" houses that aren't selling leading to investors dropping prices.

As a young guy, it is frustrating that there are so few solid investments because everything has been inflated to Pluto. I guess I can still short Google by creating a business that lets people get out of Google products.

JLee2027's picture

You are SO RIGHT, everything has been inflated to Pluto.  Everything the Government touches goes way up.

I haven't bought glasses in about 15 years (been wearing contacts) so recently I checked some prices out. Basically $500 now (insurance pays). Used to be $100-200.  Lunacy.  Forget it.

yellowsub's picture

the disconnect between stock markets and economic reality willl not change the inevitable. 

Social unrest will before the markets will tank...   That may even make it go higher!

Iconoclast421's picture

50% down is still nearly 100% higher than the 2009 low.

CRM114's picture

Real inflation or Government 'Pretend' inflation?

In.Sip.ient's picture

A minute ago, BtC=US$3991.56

 

Those of you who think the FEDs will print their

way around this problem with asset prices would

be correct if it weren't for some fairly obvious

competition on the horizon.

 

CBs are now in a quandary.  Either they compete

with the blockchain, or they are toast.  If they compete,

most governments around the world will be paying out

more in interest than they have tax revenue, by the

time prime rates quadruple from their present levels...

 

 

oldschool's picture

You're assuming it will be a fair competition.  Don't.