Former Republican congressman and presidential candidate Ron Paul in an interview late last week said President Donald Trump has been a ‘great cheerleader’ for the economy, but that it is “not sound” over the long term.
Paul is a well-known deficit hawk, and he warned of rising debt because the country will eventually have to pay for the massive spending currently going on in Congress. Paul appeared on “Rising” with Krystal Ball and Buck Sexton on Hill.TV.
“I would say on a general appearance, it’s (the economy) pretty good — regulations are down, and taxes are down but I give him more credit, which is pseudo-credit in that he’s a great cheerleader, and there is such a thing as subjectivity in cheerleading in the economy — people do respond in a positive way.
“But the economy on the surface is good, but it’s not sound, it’s not lasting, it’s based on debt and the payment will come due soon.”
Paul notes rising interest rates employed by the Federal Reserve for the foreseeable future and a growing housing bubble as things to worry most about concerning the economy and rising national debt. The Fed has signaled it will raise its benchmark interest rate again in December, and plans three more hikes in 2019.
“I have a feeling we might not make it to the end of the year before you see the markets sending a much stronger signal,” Paul said before noting we are headed toward a “big bust,” saying it’s not a matter of if but rather when we will see a massive market correction.
“Right now we are at the tail end of one of the biggest, massive monetary inflation in the history of mankind,” said Paul, a frequent critic of the Federal Reserve who often calls for the U.S. to return to the gold standard and abolish the Fed.
Editor’s note: Is Ron Paul’s warning something you take seriously, or is he not giving President Trump enough credit? Share your thoughts in the comments below.