Introduction by Steven Longenecker
F or years, former U.S. presidential candidate and 12-term Congressman Dr. Ron Paul offered an alternative to the typical positions taken by both the Democratic and Republican Parties... Ever since he first went to Washington, D.C. in 1976, he has been a critic of fiat currency. He’s pushed to abolish the Federal Reserve, even writing a book titled End the Fed . And he’s spoken out for decades on the need for a new standard in the U.S. financial system. He was of the few voices advocating for limited government, individual liberty, and sound fiscal principles. You won’t hear many other politicians take those positions. And we would all be better off if his warnings were heeded. For example, several years before the 2008 financial crisis, he warned the House Financial Service Committee that mortgage subsidies were dangerously distorting the U.S. housing market... Like all artificially created bubbles, the boom in housing prices cannot last forever. When housing prices fall, homeowners will experience difficulty as their equity is wiped out. Furthermore, the holders of the mortgage debt will also have a loss. These losses will be greater than they would have otherwise been had government policy not actively encouraged over-investment in housing.
Joining him in these warnings was financial publisher Porter Stansberry, founder of Stansberry Research. In June 2008, Stansberry published a letter titled: “Freddie Mac and Fannie Mae Are Going to Zero: How to Protect Yourself from the Greatest Financial Calamity of Our Lives,” wherein he described the massive danger in the American housing market. At the time, Freddie Mac and Fannie Mae were each trading for more than $25. Within a few short months, they would each trade for less than $1. This dead-on prediction of the mortgage meltdown got the attention of Barron’s , which labeled Porter’s work: “remarkably prescient... Nothing, as far as we can see, has happened to contradict his dire prophecy.” In the years since, both Dr. Paul and Mr. Stansberry have detailed an even bigger crisis currently building in America... Porter Stansberry wrote and produced a public warning a few years ago titled “End of America,” which more than 40 million people read or watched on YouTube. This coming crisis, with a catalyst of an imploding national debt and the end of the dollar’s reserve currency, will dwarf the Great Recession... Read their recent frank and unscripted conversation here, which American Consequences has lightly edited only for clarity...
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