Former Congressman Ron Paul says market watchers fretting over President Donald Trump’s steel tariffs are missing the bigger economic picture as he predicts a massive stock market plunge.
Over the past few days, economic experts featured in mainstream media have been sounding the alarm about potential financial consequences of Trump’s steel and aluminum tariffs as affected international producers retaliate.
But, according to Paul, that should be the least of the U.S.’s market concern.
In the coming weeks, Paul said, U.S. markets are going to begin feeling the consequences of years of misguided Federal Reserve policy.
“If the Fed continues on the things that they are sort of planning on doing, it’s going to be a calamity,” Paul said on CNBC.” “I think we have a greater distortion and a financial danger sitting out there bigger than ever before.”
At the heart of the problem is the Fed’s longstanding quantitative easing policy, which has driven up debt dramatically by pumping assive amounts of easy money into the market over the past several years.
“Everything is just very burdened with debt, and there’s no stopping it,” Paul said, adding that he wouldn’t be surprised to see markets drop by as much as 50 percent.
If Paul’s prediction is correct, President Trump may be set to take the blame for one of the biggest market collapses in modern history.
“The correction is going to be huge, and I don’t think anybody can predict, but I think this correction we had in ‘08 and ‘09 wasn’t allowed to really go its course and restore some sensibility to the market,” Paul told CNBC. “I think that’ll be a mild correction to what could happen.”
Paul isn’t alone in believing Trump is slated to take the blame for market conditions far beyond his control.
In fact, more than a year ago we began telling you how the president was being set up as the scapegoat for a long-coming market collapse.
Read more about that here: BUST: Trump will take the fall for the economic collapse