Ron Paul: Not a ‘total shock’ if stocks plummet 25% and gold soars 50% by October

Monday, July 3, 2017
By Paul Martin

Stephanie Landsman
CNBC.com
7/3/2017

A painful correction is coming and there’s little that can be done to prevent it, according to former Republican congressman and libertarian firebrand Ron Paul.

Speaking to CNBC last week, the former GOP presidential contender argued the economy is not as strong as Wall Street consensus believes, and the situation could turn ugly as soon as October.

“If our markets are down 25 percent and gold is up 50 percent it wouldn’t be a total shock to me,” said Paul recently on “Futures Now.”

That scenario would drag the S&P 500 Index as low as 1,819, and gold as high as $1,867 an ounce from current levels.

Paul, who’s also a medical doctor and former U.S. Representative from Texas, is a well-known bear who has been sharply critical of Trump administration. He has also been putting a lot of blame on the Federal Reserve for keeping interest rates historically low for so long.

Although the Fed is undertaking a rate hike campaign after nearly a decade of ultra-accomodative monetary policy, some believe asset prices—and the economy—could still react badly.

“I think it’s a very precarious market, and the Fed better be very careful. Since they are incapable of knowing what to do, I don’t expect much good to come out of anything they do,” said Paul. “There are so many mistakes made out there that the correction is almost unlimited.”

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