If you can’t understand how negative interest rates should even exist, watch this eye-opening, 20-second admission by former Federal Reserve Chairman Alan Greenspan…

As Greenspan admits, central banks have the unlimited ability to create money out of thin air. It never runs out.

They lend that money to governments by buying their bonds. That artificial demand for government debt—which wouldn’t exist in a free market—drives bond yields down to zero… then negative.

Sooner or later, bond buyers are going to figure out paying interest to own government debt (instead of earning interest) is a bad idea. When they do, the game will be over.

The only bond buyers left will be the central banks and their made-up money. Markets will descend into chaos.

We can’t know when that will happen. But whenever it does, it won’t be pretty…

  Former Congressman Ron Paul is one of the most vocal critics of the Fed. Here’s what he wrote over at the Ron Paul Institute for Peace and Prosperity:

Since the creation of the Federal Reserve in 1913, the dollar has lost over 97% of its purchasing power, the U.S. economy has been subjected to a series of painful Federal Reserve-created recessions and depressions, and government has grown to dangerous levels thanks to the Fed’s policy of monetizing the debt.

Yet the Federal Reserve still operates under a congressionally created shroud of secrecy.

You can watch a special interview with Ron Paul on the dangerous implications of Fed policies on your investments—and the steps you can take to protect yourself—right here.