“They Can’t Print Money Forever” - Ron Paul

“They Can’t Print Money Forever” - Ron Paul

- Former U.S. Congressman blasts Fed’s role in markets
- Gives scathing analysis of modern economics and markets
- Highlights complete disregard of economic fundamentals in investment decisions today
- As will be the case with Greece, U.S. will eventually be forced to liquidate debt
- Attempts to forecast day of reckoning are futile as it is a function of psychology
- “They can’t print money forever”
- Gold and silver will weather and thrive in currency devaluation

Ron Paul, former congressman for Texas, laid plain the absurdity of central policy towards the markets in a recent interview with Amanda Diaz on CNBC. He believes a day of reckoning is in the cards because the central banks “can’t print money forever.”

Dr. Paul blasted the role of the Federal Reserve in markets where superficial pronouncements herd speculators to and fro: "I am utterly amazed at how these Federal Reserve Chairman reports can play havoc with the market: one word - what they say and what they don't say and who's going to interpret it,” he said.

He believes this manipulation of markets by the Fed is having very negative consequences for the economy. Speculators are chasing Fed-induced momentum rather than making investment decisions based on analysis of what is happening in the real world. Savings, once the bedrock of American capitalism, have been replaced by easy credit leading to “a lot of malinvestment and a pyramiding of gigantic debt”, adding“People don't depend on savings for their capital - they depend on the Fed!”

He states that at some point the financial elites are going to have to admit that Greece’s debt is unpayable and will have to be liquidated. He sees the same thing eventually unfolding in the U.S. also, saying “there will be an unwinding of this pyramiding of debt and all this malinvestment that has occurred for a good many years.”

The interviewer - abandoning any pretence that the markets are in anyway independent - states “This is a Fed that has held this market up for quite some time now” and then asks Dr. Paul to indicate when he thinks the crisis will unfold.

ENDS

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