Ron Paul: Predicts 15-year depression

But the credibility of both western governments and their currencies is waning, and has been ever since the gold standard was abandoned in 1971, says Mr Paul. And that means even “safe” investments are far from safe, he claims.

“People will start to abandon the dollar as current and past economic policies create a steep rise in interest rates,” Mr Paul says.

“If you are in Treasuries, you will need to be watchful and nimble to time your escape.”

Unfortunately, cashing out will not protect the value of investments, he insists, because “fiat” currencies will all decline over the coming years as measures to try to haul the world economy out of recession fail. “The current stimulus measures are making things a lot worse,” says Mr Paul.

“The US government just won’t allow the correction the economy needs.” He cites the mini-depression of 1921, which lasted just a year largely because insolvent companies were allowed to fail. “No one remembers that one. They’ll remember this one, because it will last 15 years.”

At some stage – Mr Paul estimates it will be between one and four years – the dollar will implode. “The dollar as a reserve standard is done,” he says. He sees little hope for other currencies where central banks have also created too much liquidity dating right back to the early 1970s.

“Europe and the US will both have to fundamentally change their money systems,” he adds.

And don’t even mention shares to Mr Paul: “The last place you want to be is in the stock market,” he says. “It may not bottom out for 10 years – just look at Japan.”

Of course, everyone has a view on the credit crisis, its causes and putative solutions. What differentiates Mr Paul is that he has been warning of the dangers to the world economy for nearly 40 years. “The breakdown of Bretton Woods was my motivation for running for Congress. I have been talking about the dangers ever since and warning that the control by central banks over the money supply would create an enormous bubble.”

A deep recession had only been avoided up until now because of the efforts of successive governments to reflate the economy. But there are no more policy levers left, says Mr Paul. “This is the big one.”

Full Article Here

Interesting story here, he's got some logic behind this prediction ... i think it's also interesting that this is published in the financial times ... who would've thought this would be reported in a somewhat mainstream media source? i think he may be the only able to say what everyone else is afraid of saying ... imo ... who knows? i could be wrong ... what are your thoughts?

I so appreciate Ron Paul...he is an honest man. Telling like it is when no one else will!

I think Paul is right...and we are in for the long haul of hard times. Everyone who hopes to survive better get thier house in serious order!

The International Monetary Fund issued a report of the WORLDS economy contracting biggest percentage in 50 years....and they are warning the world of civil unrest and war!
Civil Unrest and War
www.reuters.com...
www.abovetopsecret.com...'

Ron Paul tried to warn congress last year...of this very thing!


Starred and Flagged!


[edit on 23-3-2009 by burntheships]

I hate hearing Ron Paul talk about anything other than things getting better. He has been right on his assesments thus far and I see no reason why his logic should change all of the sudden. If you look at what happend during the depression, there were a few on top and a whole bunch at the bottom. I can already see that I should be paying more attention to how clean the floor is and a bit less attention on the ceiling.

You haave to register with a service to read the full article.

You don't need to read this line it's only filler.

reply to post by baseball101


Glad I didnt listen to him. I started buying stocks 3 months ago. Man is it paying off now. I think you will see a flood of people start to getting into the market again. They dont wont to miss out on an opportunity to make money like this. It only happens once or twice a lifetime.

reply to post by tide88


being as you can only help your cause by telling us what stocks you bought, please share with the rest of the class or spit out your gum now mister.

Originally posted by network dude
reply to post by tide88

 

being as you can only help your cause by telling us what stocks you bought, please share with the rest of the class or spit out your gum now mister.

Sure there was a thread about it 3 weeks ago. I posted my suggestions on the stocks I had been buying www.abovetopsecret.com...

here is one of my predictions from that thread

The reason the prices are so low is because of the mass panic. Amex will be fine. If you are in it for the long haul you will bank. GE is also in great shape. It is just people panicking. You will see some of these financial start to rise in the next two weeks. BAC will be an 8$ stock in two month.

Man am I good or what?


[edit on 23-3-2009 by tide88]

Originally posted by tide88
reply to post by baseball101

 

Glad I didnt listen to him. I started buying stocks 3 months ago. Man is it paying off now. I think you will see a flood of people start to getting into the market again. They dont wont to miss out on an opportunity to make money like this. It only happens once or twice a lifetime.

I agree, there is a lot of money to be made if you have the right timing and knowledge. Honestly I was expecting the Dow to hit the 5500 range before I switched to a more "aggressive" mode but I may have waited to long.

The Roller coaster ride will continue for a while and corporate earnings will still not be as expected for the first third of 09 but after that I feel we will plateau and then slowly start climbing at a more measured pace.

This is my own opinion though and has more basis in feel then fact.

When I heard GE was around $10 I was like "Oh man I should get in on some of that!"

Honestly I am more then a little tired of the Doom song, it got old after the first verse.

reply to post by tide88


there is always money to be made but it doesnt mean he was wrong about this situation!

what do you think he is wrong about?

ron paul just said the government is Insolvent.

reply to post by epete22


Yes he did...

Since beck has an audience...people will see that he said that.

Also, he brought up the legislation he has for auditing the fed...hopefully this helps get more support for the bill!

I believe getting some transparency on the federal reserve will finally shed some light on what is happening to our currency and where trillions has disappeared to.

Originally posted by Matthew5012
reply to post by tide88

 

there is always money to be made but it doesnt mean he was wrong about this situation!

what do you think he is wrong about?

“The last place you want to be is in the stock market,” he says. “It may not bottom out for 10 years – just look at Japan.....They’ll remember this one, because it will last 15 years.”

Those are two statements that I believe he is completely wrong about.

A senior Chinese government official and economists said in remarks published on Monday that U.S. assets are still a safe investment option for China despite the Fed's decision to buy a large volume of Treasury debt.

Looks like China thinks US assest are still safe to buy. Also with the whole stimulus package thing. Yes we are spending way more then we have, scary levels. However if the stimulus works, we will see a return on our investments. Heck best if the best case scenario plays out we could make trillions. Maybe pay down some of that debt. Dollar could be stronger then ever. Of course there is the other side if it doesnt work.

Originally posted by tide88
reply to post by baseball101

 

Glad I didnt listen to him. I started buying stocks 3 months ago. Man is it paying off now. I think you will see a flood of people start to getting into the market again. They dont wont to miss out on an opportunity to make money like this. It only happens once or twice a lifetime.

Three months ago the market was much higher than it is now. Good attempt though

Originally posted by johnny2127
Originally posted by tide88
reply to post by baseball101

Three months ago the market was much higher than it is now. Good attempt though

It called dollar cost averaging. If you read my link you would of known my strategy and the advice I gave. What do you think I just bought stocks three months ago and sat on then. Nope! I have been buying stock every week for the past three months. I was also doubling and tripling up as those particular stock went down. The average I paid on Bank Of America was 3.50. No too bad of a return. You would be suprised how well this method works. Good Try Though! Click the links I posted. Love it when people blindly respond without reading posted links. Regardless the point I was making is he has no clue what he is talking about. Over time you will realize this.

[edit on 23-3-2009 by tide88]

reply to post by tide88


Your strategy is way too cool.

However if you are someone who has lost their job and making it on a day to day basis PLAYING the markets is not an option.

My only advice is to listen to those who advocate to benefit our nation not the individual.

Have anice T-BONE tonite, savor your victories, but don't say you were not warned.

reply to post by tide88


Stocks are a ridiculous way to make money. Don't get me wrong. I'm not saying you can't make money buying and selling stocks. What I'm saying is that it is a ridiculous system. It's fake. If you want to invest, invest locally so you have trustworthy businesses you can depend on in your community that will provide things to you that you need.

Giving more and more investment to these massive companies is just worsening the situation of personal freedoms. Sure, you'll make a lot of money investing in them, but you can also make a lot of money selling saline solution on the street as flu vaccine; that doesn't make it right, and a resulting epidemic doesn't serve you anymore than the victims of your activity.

Please understand what I'm saying: even the form of investment we do in these start-up, younger company only further emboldens them. What's the difference between Chili's, Maccaroni Grill, and your local mom and pop restaurant? They all started as mom and pops...the difference is that your local mom and pop's is still owned by mom and pop and still revolves around the food...Meanwhile, Chili's and Macaroni Grill kept growing and are now owned by the same corporation, do not focus on the food. Mom and pop are long gone as the number-crunchers and marketing people took over to create "an experience" with faux-cuisine, hyper-marketing and lack of real authenticity.

The worst part is that these superchains explode and the next thing you know tourists only eat at them when they travel...never grazing the local restaurants that have been a staple of the community they're visiting, eventually leading to their decline and disappearing.

So...keep investing in these companies, but I think there is a better way to be wealthy without selling out. It could also help circumvent this problem RP has showed to exist.

reply to post by huntergatherer


Good points. If I was smart I would probably sell all my shares now, however being the constant optimist I am I will stay in for the long haul and hope that Ron Paul is wrong. I do agree that he is definatly the one who is looking out for this Country and not the individual. I just dont believe his predictions are right.

reply to post by Caminhando

The worst part is that these superchains explode and the next thing you know tourists only eat at them when they travel...never grazing the local restaurants that have been a staple of the community they're visiting, eventually leading to their decline and disappearing

You too make some really good points. I am all for investing in my community, I am a small business owner myself. However I kind of disagree with the above statement. I live in a resort/tourist town in SW Florida. The resturants that do the best are the ones that are locally owned. Resturants like chillis, cheesecake factory, Ruth Christs have had to close down because they cannot compete with the locally better served food resturants. ANd when I go on vacation I make it a point not to eat at a chain, kind of defeats the purpose getting a feel for the local flavor.

You had better think Mr. Paul is wrong,

If he's right you better brush the dust off your limited survival stores and throw away your cell phone and your revered brokers.

May GOD BLESS Ron Paul. He will be welcomed in Heaven by the Founding Fathers.

May God have mercy on all those in the know who took part in the game to undermine the values America was founded upon.

God Help America.