Former Republican congressman and presidential candidate Ron Paul warned in an interview Thursday that the economy is “not sound” even though President Trump has been a “great cheerleader” for it.
Paul, a deficit hawk in Congress, warned of rising U.S. debt, saying the country would eventually have to pay the bill even if growth is taking place for the time being.
“I would say on a general appearance, it’s 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,” Paul told Hill.TV co-hosts Buck Sexton and Krystal Ball on “Rising.”
“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 cited rising interest rates and what he described as a housing bubble as negative factors for the economy.
“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,” the former congressman said.
He said this will eventually lead up to a “big bust,” saying it’s not a matter of if there will be a massive correction but rather a matter of when.
“Right now we are at the tail end of one of the biggest, massive monetary inflation in history of mankind,” said Paul, a critic of the Federal Reserve who has called for a return to the gold standard.
The nation’s unemployment rate dropped to 3.7 percent in September, and the economy grew at 4.2 percent in the fourth quarter, according to government statistics.
— Tess Bonn
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