Not even a decade has passed since the financial crisis of 2007-08, but according to Former Congressman Ron Paul the world should start preparing itself for the next financial crisis which will see the collapse of paper money.

Paul was on CNBC recently to explain why he thinks the next financial crisis will be led by the currencies.

Collapse Of Paper Money

“The fundamentals are a disaster, Paul said. “Paper money has never lasted, fiat money always collapses, paper eventually ends and just look at the chaos, all the [mad] investment and debt that exist and people pretend well it’s ok as long as the Fed doesn’t raise interest rates 1 quarter of 1 percent, we have to go negative.”

The Catalyst

Paul was asked what could act as a catalyst for the currency crisis that he is predicting, “Well most of the times these things are unforeseen and most of the time there is a psychological element and a panic if you have unsoundness and then there is no foundation, it’s just held together by confidence.”

He continued, “What happens is if the confidence is gone you know something might happen in Greece, who knows what’ll happen there and it may have ripples. Did anyone warn us about 2007-2008 and Lehman brothers, nobody warned us about that. The [mad] investment was there, it’s all out there and it’s very, very fragile.”

“To be confident that don’t sweat it is in denial. There is a system that is very, very fragile and exactly how it transpires is hard to say, but there is going to be some international, economic or geo-political event. Right now the price of oil, how many people predicted that oil would be down to $50 a year or so ago?” Paul asked.