Former Congressman Ron Paul is raising red flags about the economy.
He believes we are in the middle of a giant stock market bubble.
And when it bursts, it could mean the end of Trump’s Presidency.
Paul – who is a staunch critic of the Federal Reserve and the boom and bust economic cycles it creates – warned TV viewers that the stock market could lose half its value in a massive sell off.
He noted this disaster is in no way the fault of Trump, but was the final legacy of Barack Obama’s disastrous time in office.
“Ron Paul’s sell-off prediction just got more severe.
The former Republican Congressman from Texas believes escalating dysfunction in Washington will create even more pain for Wall Street.
“A 50 percent pullback is conceivable,” Paul said on “Futures Now” recently. “I don’t believe it’s ten years off. I don’t even believe it’s a year off.”
According to his calculations, it would cut the S&P 500 Index in half, to 1212, and the blue-chip Dow Jones Industrial Average would collapse to 10,837.
Paul noted that there’s a lot of chaos in Washington right now, with an “unpredictable president” and those who are inclined to “tear him apart” but if the market takes that big of a tumble, he doesn’t see it as Trump’s fault.
“It’s all man-made. It’s not the fault of Donald Trump in the last week. 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 ten years to cause all these problems that we’re facing,” he said.”
An economic collapse would spell doom for Trump’s re-election chances.
So would the establishment engineer a downturn just to be rid of Trump?
Trump has been critical of Fed Chair Janet Yellen in the past.
Paul- and other critics of the Fed – note that the Fed Chair has the power to expand or contract the economy by controlling interest rates.
If the Fed hikes rates it could lead to belt tightening across the economy.
Could Yellen and the Fed be the secret weapon the elites use to get rid of Trump?
Removing him from office using dirt gleaned from special counsel Robert Mueller’s investigation – especially if he concocts wrongdoing that has nothing to do with Trump or Russia – would smack of a coup.
But manipulating the circumstances surrounding the 2020 election would allow the swamp to claim Trump lost at the ballot box despite the fact that they rigged the game against him.