With Brexit now passed, the question remains: Is the EU breakup going to continue?
According to former congressman and presidential candidate Ron Paul, it just might be.
Speaking with CNBC, he said the marketplace is focusing on the wrong issue as it digests last week’s surprise U.K referendum outcome.
“I think the important issue is the sentiment and how people are responding,” he said. “The sentiment now is that, especially for the British people, that they don’t’ want in there and other countries will do this too.”
Paul thinks the Brexit vote proves just how fragile the current economic system is. “I think this whole system of economic planning, and central banking is under attack because we’re running out of steam,” he said.
“I think the message is that this system is coming to an end.”
However, it is not because of the Britain-EU breakup that the end is looming, he noted, but rather because of the fact that the fiat-only monetary system is putting the global economy in a precarious place.
“The breakup is a reflection of the bad policies the world has been following.”
He warned that there is still a lot of market instabilitiy due to monetary policies in place. And, in his typical anti-Fed and anti-central bank rhetoric, Paul noted that a collapse is looming because of policymakers’ decisions.
“The catastrophe doesn’t come unless there’s something that precedes it and what sets the stage is monetary policy – artificially low interest rates, zero interest rates, which make no sense,” he said. “So there’s a lot of instability still out there and that hasn’t been corrected yet. I don’t think it’s going to correct easily and I think you’re going to see a very weak market for a while to come.”
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