Former Texas Republican and Libertarian Congressman Ron Paul said on CNBC’s “Futures Now” that he believes the bond trading pits are sending investors a warning about the state of the U.S. economy, and it isn’t good.

The recent jump in Treasury bond yields suggest we are barreling toward a recession and complete market crash at a faster and faster clip — and there’s no way to prevent it, according to Paul.


“We’re getting awfully close. I’d be surprised if you don’t have everybody agreeing with what I’m saying next year some time,” he said Thursday on CNBC’s “Futures Now.”

His comments came on the heels of the benchmark 10-year Treasury Yield rising to seven-year highs, leading to greater fears of inflation. The 10-Year Treasury Yield moves inversely to its price, and while it is beneficial for personal savings accounts, it could cause irrevocable damage to adjustable mortgage rates and those looking to finance a new car.

“It can be pretty well validated by looking at monetary history that when you inflate the currency, distort interest rates and live beyond your means and spend too much, there has to be an adjustment,” he said. “We have the biggest bubble in the history of mankind.”

Paul is a retired author, physician and politician who served in the House of Representatives for Texas’ 22nd congressional district from 1976-77, and again from 1979-1985, and then from 1997-2013 for Texas’ 14th congressional district. He ran for president as the Libertarian party nominee in 1988, and then again in the Republican primaries in 2008 and 2012.

Paul, who is known as the “intellectual godfather of the Tea Party movement, has long advocated for the outright abolishment of the Federal Reserve and the tax policy. He said it’s just a matter of time and when, not if, we will have another major recession based on the looseness of U.S. monetary policy since the 2008 financial crisis.

“I know it’s going to happen,” Paul said. “It will come, and the bubble is bigger than ever before.”

Ted Bauman, a longtime critic of loose monetary policy, has been warning investors of a looming market collapse. He says the Dow could plummet by more than 50% in the coming months. During a recent interview, Bauman lays out a clear and concise case for why the coming collapse will be devastating for millions of Americans who are unprepared. You can see Ted’s entire interview here.