Monday, August 21, 2017

Ron Paul Attacked By MarketWatch Columnist

MarketWatch columnist  just sent this tweet out:

The tweet was in response to a Ron Paul appearance on CNBC.

“A 50% pullback [in the stock market] is conceivable,” Dr. Paul told CNBC. “I don’t believe it’s 10 years off. I don’t even believe it’s a year off.”

“It’s all man-made. It’s not the fault of Donald Trump in the last week,” he said. “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 10 years to cause all these problems.”

For the record, I am not as bearish on the stock market short-term as Dr. Paul. The potential for a severe pull back in coming weeks is very real but I do not believe it will be a pullback of 50% or result in a new Great Depression.

That said, Dr. Paul makes a very good point that any pullback will not be the fault of President Trump. The blame should sit squarely with the Federal Reserve and its manipulations of interest rates and the money supply. And the Fed manipulations will eventually lead to a new recession/depression just like Fed manipulations have in the past.

Dr. Paul understands this. He is not a market timer, and would probably admit this himself, but he understands business cycles and why there have been so many recessions/depressions since the Fed went into operation. So many in fact (18) that you wouldn't be able to list them all on a packet of gum, never mind listing the tenets of Austrian school business cycle theory Tenets that Dr. Paul is very familiar with.


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