"I am utterly amazed at how the Federal Reserve can play havoc with the market," Paul said on CNBC's "Futures Now" on Friday morning. The S&P 500 closed near its all-time high Thursday. "I look at it as being very unstable," says Paul. "The fallacy of economic planning" has created such a "horrendous bubble," that when it pops there will be "chaos."





RON PAUL: You don't know the timeline on this, it could be tomorrow, it could be a month, or it could be a couple years from now, because it all depends on a psychological acceptance of the system. So a lot of people who are still making a lot of money know the system is not going to collapse, but they figure that if everybody else thinks it is going to collapse, just keep owning bonds and buying stocks. Next week they may sell them all again!



I don't think there's any way to know what the time is, but after 35 years of a gigantic bull market in bonds, believe me they cannot reverse history and they cannot print money forever, seed the market forever. Eventually, the markets will rule. And of course that is only a question of when this will happen.



Of course, I run a little bit scared, I think there will be a day of reckoning...



It is the fallacy of economic planning through monetary policy that is at fault.



You can not have it, it is artificial, it has nothing to do with freedom and free markets and capitalism and sound money. It is all artificial, it is all political, and that is why we are so vulnerable. The world is on the verg of looking more like Detroit of Greece than anything... It isn't going to happen tomorrow or overnight, but it is inevitable because [this policy] is unsustainable.

"I think [the crash] is going to be much greater [than 10 percent] and it will probably go a lot lower than people say it should," said Paul. "I don't think it's going to be just a correction."