The United States will likely suffer a Greek-style economic collapse soon because, like Greece, it’s impossible for the U.S. to pay its debt, according to former congressman Dr. Ron Paul.
Dr. Paul pointed out that the U.S. is currently facing several financial bubbles of the same size and scope as the housing bubble which caused the Great Recession.
“We still have another stock market bubble and another housing bubble going on, but the big bubble I think is in the bond bubble,” he said Thursday on the Alex Jones Show. “It’s been going on for 35 years, taking interest rates from 21% down to actually negative.”
“[Central banks] have been getting away with it, so this means distortion, and not only is there money involved, but it also distorted all the investments made during this time.”
And the biggest distortion this encouraged, Dr. Paul added, is debt.
“It encouraged debt for a lot of people, but in particular government,” he continued. “As long as our government is able to print the reserve currency [the U.S. dollar], it’s going to limp along, even though our economy is limping along, but that will come to an end.”
“Right now we’re starting to see the whole thing coming apart; I mean we look at Detroit as an example, we see what’s happening in Greece, they’re worrying about what’s going to happen after Greece is actually recognized as totally bankrupt and there will be other countries.”
Dr. Paul also warned that the central banks will keep trying to delay the inevitable by printing and spending even more money.
“But that’s coming to an end,” he said. “The day of reckoning is at hand.”