Ron Paul: “It’s The Largest Financial Bubble In History”

Ron Paul, someone who’s been in the finance game for a long while thinks we’re in the largest financial bubble in monetary history. This video explains his thoughts as to why and what his portfolio looks like to prepare for this...

📊 Sven Carlin (Expert Investor) Portfolio & Free Investing Course: http://bit.ly/SvenCarlinPortfolio

📈 How To Invest Course: http://bit.ly/theinvestingacademy-how-to-invest-in-the-stock-market

Ron Paul, one of the great financial minds in the United States, he’s been speaking up quite a bit lately. I’m not sure if many of you have been paying attention to what he’s saying., But it is interesting and I want to catch you up to speed. He thinks we’re currently in the biggest financial bubble in the history of monetary policy…

So the question becomes why? Why does he think this. Ok, first thing he mentions is inflation.
Now generally the Fed aims for a 2% inflation rate each year. Recently the Fed have come along and changed this policy.

They now want to average a 2% inflation rate. That means that the Fed is willing to allow inflation to run hotter than normal in order to support the labor market and the broader economy.
Now this all sounds well and good but there are a lot of problems that come with inflation. Ron Paul doesn’t like it one bit.

Because ok, let’s look at the definition of inflation. Inflation is “a general increase in prices and fall in the purchasing value of money”. Basically meaning if you just hold on to cash it becomes worth less over time.

As Ron Paul says “the policy of our government is to steal 2% of the value of the dollar, on purpose! And now they’ve become even more desperate towards inflation”.

So do you think that any sound investor is going to want to have their money in the bank? No.
Look at the type of interest that you can get on your money. It’s terrible. The average USA bank savings rate is 0.09%.

So basically this means the money in your bank, is losing it worth for every second that you have it in there. The mix between inflation and low interest rates, kills savers.

So they think, no I’m not going to have my money in the bank, let’s look at the stock market. And they start buying stocks.

And what this does it causes prices of stocks to go up. Anyone who’s done economics 101 will know this. As we can see the stock market has recovered to almost full time highs, up 45% over the past 7 months. The economy however has been going terrible, but stocks have not seemed to notice!

And of course it’s not just the stock market. House prices are around all-time highs as well, because of this same notion. Low interest rates, which means you can borrow more, and there’s no desire to have your savings in the bank…

The next thing that Paul refers to as been a driver of asset prices, is this new notion of unlimited quantitative easing. So it was in March 2020, when the Fed announced that they will essentially allow unlimited quantitative easing to help the economy.

Except of course they said it in a much more politically correct way. They announced that they will continue their asset-purchasing program "in the amounts needed to support smooth market functioning and effective transmission of monetary policy to broader financial conditions and the economy." Basically there’s no limit to the amount that they can print now.

And this is something that we’ve never seen before. Unlimited QE.

This has resulted in the Fed’s balance sheet blowing up. It’s now soared past $7 trillion dollars. Almost doubling in size! And we don’t know how much worse this will get in the future!

__________________________________

Subscribe Here: https://bit.ly/2Y1kNq8

___
DISCLAIMER: It's important to note that I am not a financial adviser and you should do your own research when picking stocks to invest in. These are just some of my viewpoints, by no means would I recommend watching one YouTube video and then immediately buying that stock. This video was made for educational and entertainment purposes only. Consult your financial adviser.