Home » Ron Paul: “It’s The Largest Financial Bubble In History” a financial history of the world

Ron Paul: “It’s The Largest Financial Bubble In History” a financial history of the world



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…

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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.

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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!

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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.

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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!

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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. .

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Ron Paul: “It’s The Largest Financial Bubble In History”
a financial history of the world
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39 thoughts on “Ron Paul: “It’s The Largest Financial Bubble In History” a financial history of the world”

  1. Pump and dump, rinse and repeat. You don't have to wait for the USA to become Venezuela, it already has. The demon rats have diluted the value of your money by 50% to fund absurd pork. They have run amok with the Treasury, and it is no accidental coincidence. They are a communist torpedo. The most significant communists are plutocrats. Money is a great servant but a cruel master.

  2. When the US dollar completely collapses, precious metals are also going to be useless. What's Ron think he's going to do? Go into a grocery store and buy groceries with gold coins? No. There will be mass on a scale the world has never seen before. the true currency is guns, ammo, and proper training. Money in general will be worthless. The real value is in items. Items that last a long time. By them while you can. Because pretty soon buying and selling won't even be a thing.

  3. There is a good deal to be learned by studying how depression triggers aligned in the past. So, to understand why the "Great Depression" occurred in the 1930s, one must look at what occurred during the years building up to the crash.

    A significant amount of the credit made available during the 1920s went into land speculation. A good primer on what occurred is found in the book "Only Yesterday" by historian Frederick Lewis Allen. Not only did investors become captured by the frenzy of the Florida land boom, this same frenzy occurred in many cities in response to population increases that triggered a significant increase in the demand for both commercial and residential land. An agricultural land boom also occurred during the First World War, during which time farmers borrowed heavily to expand their land holdings and production. A few years was required after the war ended for European farmers to recover, but by the mid-1920s global production exceeded demand, prices fell, farmers defaulted on loans when government guarantees were removed, and rural banks failed by the hundreds.

    As the land boom crashed, investors shifted heavily into the stock market, driving up prices well beyond what any fundamentals supported. Thus, by the end of 1929 the U.S. economy was stressed across almost all areas of production as well in the financial markets. To be sure, imprudent bank lending deepened the crash and lengthened its duration, but it was a crash in the making because of the failure to utilize tax policy to tame the credit-fueled, speculation-driven land markets. A few economists (e.g., Harry Gunnison Brown, Scott Nearing and John R. Commons) had argued the case made in the late 19th century by Henry George, who showed that cyclical booms and busts would be tamed only if the full or nearly-full public capture of the potential annual rental value of land and of rents from other sources (e.g., the broadcast spectrum) became public policy.

    Harry Gunnison Brown was joined over the succeeding decades by a small group of economics professors who continued to make Henry George's case. One could argue that recessions that began again following the end of the Second World War would have been even worse if local governments did not capture some land rent via the taxation of real estate. However, as land prices climbed property assessments rarely kept pace. This made speculation in land an even more profitable investment.

    Relying on out-of-date assessed valuations rather than current market values created a serious analytical problem for government statisticians. They simply did not understand that any increase in the price of land is inflationary and did not include such increases in their calculation of inflation. Another failure has been to accurately calculate the annual aggregate rent that is privately captured as unearned income (whether imputed or actual). Since the administration of Ronald Reagan, the federal government has not monitored land prices. The figures utilized in the econometric models relied upon by the Congressional Budget Office and the Federal Reserve are around 5 percent of the actual potential rent in the economy (see Joseph Stiglitz or Mason Gaffney on this particular problem).

    I offer here a very rough estimate of the rent attached to just one part of the economy, the residential property market. At mid-2020, the median price of a single-family property was around $295,000. There are about 140 million existing housing units in the United States. If we assume a fairly conservative median land-to-total value ratio of 35%, this means that the aggregate residential land value in the U.S. is $103,250 per property, multiplied by 140 million = $14,455,000,000,000 ($14.455 trillion). Economic theory tells us that this aggregate land price occurs because of the capitalization of the net amount of rent that remains in private hands after taxation. If most or all of the rent were captured via taxation there would be nothing to be capitalized and land prices would fall to very close to zero. What the rent fund might be depends on the discount rate. If we assume that investors will invest in land if they can obtain an annual increase of 5%, the the rent fund would be calculated as follows: 5% of $14.455 trillion = $722.75 billion of rent JUST for the land under existing residential buildings. Add in the number of vacant residential lots around the U.S. and this figure will increase considerably.

    Tragically, the public capture of land rent never became public policy, allowing the land market cycle to operate from boom to bust. It is on schedule to crash again in 2026. I have prepared a relatively short video in support of this forecast for anyone who reads this and has an interest in more details:

    https://www.youtube.com/watch?v=fmA6ZPs-wus

  4. you´ve been warning for a crash since at least 2 years… corrections happen every 2 years, and we can expect a crash once every 10 years, so eventually you´ll be right, but in the meantime, market is bullish

  5. USA will not be in a recession as long as the rest of the world is onboard with the illusion that the USD is still a solid legal tender for international transactions. The collapse of oil and adoption of cryptocurencies by world governments will together be the nail in the coffin perhaps

  6. Ron Paul is one of the great financial minds? What has he done, exactly? I very rarely hear him say something I don't already know, and usually it's because he didn't think it through.

  7. Right wing, shock jock rubbish. The economics in this video is nonsense. The old 'living within our means' lie peddled again. The last financial crisis for example, wasn't caused by the 'government printing press'; it was caused by financial deregulation and the consequences of rising, unsustainable inequality.

  8. Most people are so damn poor that they couldn’t buy even an ounce of gold. We are living paycheck to paycheck hoping that the world doesn’t turn to crap!! I respect Ron Paul and his true wealth is his faith in Jesus!!

  9. He and Peter Schiff and others only want you to buy the gold they are selling. They live in their own financial reality. They have been wrong for decades; our system is fine. Our government is not libertarian and don't invest in the monetary system you believe in but the one we have in reality.

  10. It might be a paradigm shift that we don't yet understand..
    If people still believe in the purchasing poser of currency, and the financial systems still work, then it works

  11. Barring some major geopolitical catastrophe, the “classic “ way for the bubble to burst would be a runaway inflation forcing the fed to raise interest rates.

  12. Come JOIN us at r/wallstreetbets, on reddit.  This is the REAL revolution, this is where we EAT THE RICH, this is where we really UNITE.  We are NOT about Red or Blue, leave your politics at the door, or you will NOT be welcome. “This ain't rock n roll, this is genocide”

  13. Reminds me of a line from the big short.
    MB: I am not wrong, I might be just early.
    INVESTOR: it's the same thing!
    Event forecast without a timeline is meaningless.

  14. It‘s not true that we‘ve been living beyond our means! We‘ve all been working our asses off! Plus we have been tapping energy from the earth in the form of coal, gas, petrol and nuclear power. Now men AND women have to work to barely make ends meet. Yes, the population of the earth has grown but we have machines which work for us and save us time and augment efficiency, such as washing machines and agricultural machines. We should all be rich sunning our buns at the beach and we should have loads of free time on our hands. Except we are being scammed! Austerity is not the solution because it is NOT US who is being wasteful with the money. We are not living beyond our means.

  15. Gold, silver and lead… lots and lots of lead.. and multiple means of dispersing it to those who will desperately want it. If this thing is worse than the Great Depression, then the government will collapse.. ANTIFA and other anarchists will come looking for your stuff, like food for instance, and you will either give them your food or you will give them some of your lead..

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