Ron Paul: US interest rates are going negative, and the Fed can't stop it

  • 📰 CNBC
  • ⏱ Reading Time:
  • 40 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 19%
  • Publisher: 72%

United States Headlines News

United States Latest News,United States Headlines

Ron Paul: 'We're in the biggest bond bubble in history, and it's going to burst' (via CNBCFuturesNow)

[are] in negative interest rates. It's never existed before. And, that's a bubble. So, we're in the biggest bond bubble in history, and it's going to burst."

Paul, a former presidential candidate and vocal libertarian known for his economic and stock market bubble warnings, contends the Federal Reserve's policies are powerless in this environment. He doesn't believe this week's Fed meeting will provide any kind of relief and cutting rates will not be the answer.

"You can't predict exactly where the creation of credit goes," said Paul. "We have a ton of inflation with all that QE [quantitative easing]. And, every time you lower interest rates below market levels and create new credit, that's a bubble.". With bonds yielding negative rates now in focus, he suggests the danger is ballooning to unseen levels."You don't know this precise time. But you know it can happen," he said.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

FuturesNow Our every year apocalypse from Ron Paul.

FuturesNow 24% chance to hit zero short term Fed rate by 2021.

FuturesNow So I would like a $100,000 loan with -5%APR over 20 years

FuturesNow 🤔🤔🤔🤔🤔warning

FuturesNow Yawn, Ron Paul. Shouldn’t he be busy hawking gold?

FuturesNow Ms. Landsman and the CNBC Twitter publisher need to have a chat with each other. “Bond yields are going negative” but “the bond bubble is going to burst”?

FuturesNow How is this guy an expert

FuturesNow 5/3 in a higher rate environment. It might not be much of a real return. But you’ll never suffer a “bubble” like loss relative to other risk assets. Period.

FuturesNow 4/3 or real estate or credit bubble. Returns will be small, muted and quite possibly slightly negative. But if rates somehow begin to lift globally, other than cash you’ll still like your investment grade fixed income fund. And in the long run, bond investors will make more money

FuturesNow 3/3 a recession. Now...I’m not suggesting the developed world does not have a debt problem as in too much debt and not enough growth. And lower rates have helped extend this mountain of debt and negative rates are no panacea for structural reform..but it’s nothing like an equity

FuturesNow 2/3 2% over the next 16 months the total return for an indexed bond investor would be approximately zero percent from 1/1/19 to 12/31/20 plus or minus. The last two recessions saw the S&P 500 cut in half. Down 55% and 50% respectively. IG bonds are an insurance policy against

FuturesNow 💵 =🧻 💶 = 🧻 💷 = 🧻 💴= 🧻 💳 = 🧻

FuturesNow Why are you giving that dope exposure? I mean he’s been calling everything a bubble for the past 50 years.... Sometimes you guys are so irresponsible....

FuturesNow Then what?

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 12. in US

United States Latest News, United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Paul Walker's Daughter Meadow Posts Sweet Tribute on What Would Have Been Her Dad's 46th BirthdayPaul Walker's Daughter Meadow Pays Tribute on His 46th Birthday (via PopCrush) PopCrush RIP PopCrush Do something for others with your life. PopCrush May God bless his soul. Rest in paradise i pray for comfort & peace for his family & friends. 😇🙏
Source: TMZ - 🏆 379. / 59 Read more »

It's 'inevitable' a correction will hit big tech, investor Paul Meeks warnsThe investor who ran the world's biggest tech fund for Merrill Lynch tells investors what to buy and sell. TradingNation Will likely start next week..
Source: CNBC - 🏆 12. / 72 Read more »

MTV 'Siesta Key' Pauly Paul Arrested On Probation ViolationPauly Paul from MTV's 'Siesta Key' was arrested in Florida for violating his probation. My mom just got out of rehab! Does anyone care? When did mullets make a comeback? Can’t teach common sense. So sad that he keeps doing stupid shit when he has potential to do good.
Source: TMZ - 🏆 379. / 59 Read more »

Negative interest rates are real, but don’t expect to get paid to borrow moneyTrump wants the Federal Reserve to cut interest rates 'to zero, or less.' It's happening in other countries.
Source: latimes - 🏆 11. / 82 Read more »

With rate cut likely, market wonders how low Fed will goWith U.S.-China trade tensions roiling markets, investors are counting on suppor... how low can they go! how low can they go! I love it when the whole stability of an economy is rested on the decision of one entity. So strong. To the basement.
Source: Reuters - 🏆 2. / 97 Read more »