The Detroit bankruptcy has been called an American tragedy, and one of the most heart-wrenching financial stories of our time. But according to Ron Paul, America’s biggest-ever municipal bankruptcy could actually give gold bulls something to cheer about.
For Paul, the Detroit bankruptcy is the first of many municipal bankruptcies to come, and could even foretell what will happen to the United States as a whole.
“Long term, you can expect governments not to change,” said Paul, who predicts that the U.S. will print more and more money as it continues to take on debt.
“We’re going to see more Detroits, and eventually the government of the United States will be somewhat similar to Detroit, because people will give up their confidence in us, they’ll give up confidence in the dollar, and eventually they’ll give up confidence in our military. And then you’ll see some real, real changes in this system, which has been built on a fiat dollar for the last 40 years,” the former U.S. representative said on Tuesday’s “Futures Now.”