It's no secret that former Texas Congressman Ron Paul is no great fan of the Federal Reserve, nor of pretty much any other arm of the government. That said, listening carefully to his thoughts about the U.S. central bank may prove instructive. The libertarian firebrand's remarks encapsulate some of the unspoken qualms many hold about the state of the American economy and her equity markets. In an interview with CNBC's "Futures Now," last week, Paul reiterated his deep skepticism about the Fed and its loose money policies.

"After 35 years of a gigantic boom market in bonds believe me they cannot reverse history and they cannot print money forever," Paul said.

Read MoreCiti economist: Fed is too chicken to hike rates The central bank has limits in what it can do to support growth, Paul said—meaning disaster may lie just around the corner.

"It's the fallacy of economic planning through monetary policy that's at fault," the former Congressman said, adding that monetary policy decisions have "nothing to do with freedom and free markets and capitalism and sound money. It's all artificial, it's all political and that's why we're so vulnerable."



Who's right and who's wrong?

For some, it's the concept of "artifice" that's particularly telling. Paul's political philosophy naturally leads him to oppose any flavor of government intervention, given his basic premise that more government is almost never good.

If the Fed's actions have done anything to improve the state of the economy, then, the economy must be on shaky, "artificial" ground—and primed for a recession and stock market crash in the near future. So why hasn't that happened yet—even after years of gloomy predictions?

"I think the Fed is very efficient and the Plunge Protection Team is very efficient and they have gained a competence in the market, that the Fed won't allow this market to drop," Paul said. He referred to the conspiracy theory that the Fed periodically sees fit to directly intervene in the capital markets by entering long equity positions.

Read MoreThis small country may present a warning for Janet Yellen Paul warned in his 2008 book "Revolution: A Manifesto" that when the Fed takes stimulative action, "it creates all kinds of economic problems. It decreases the value of the dollar, thereby making people poorer," he wrote.

"When the money supply is increased, prices rise--with each dollar worth less than before, it can purchase fewer good than it could in the past," he added. "The average person is silently robbed through this invisible means." Yet after three rounds of quantitative easing, in which the Fed directly created money to buy bonds in the open market, inflation has remained quiescent, with deflation often posing the more realistic threat.

That leaves Paul waiting for the fulfillment of the other half of his 2008 prediction; namely that "in the long run, even the apparent stimulus to the economy that comes from all the additional borrowing and spending turns out to be harmful has well, for this phony prosperity actually sows the seeds for hard times and recession down the road."