During a June 28 interview with CNBC, former U.S. congressman and presidential candidate Ron Paul (shown), when asked if the Brexit vote is “the beginning of the end of the European Union,” replied: “Yes, I really do, it will become nonfunctional.” Paul continued:
I think in a functioning way it really is coming to an end. That doesn’t mean tomorrow or the next day, but people are going to be very unhappy. But the end is coming, not because of the breakup. The breakup is a reflection of the bad policies that the world has been following. We’ve never lived — in the history of the world — with pure fiat money for as long as we have, for 40-something years, since 1971. So it is a type of bubble and mal-investment and debt-ridden world that you have to deal with.
Paul blamed the instability of the financial markets, exhibited by sharp price declines following the Brexit vote, on what preceded the vote. “What has been preceding this situation that we have throughout the world and this country as well is artificially low interest rates,” Paul said. Such low interest rates, he observed, cause investors “to make mistakes in buying bonds.”