Ron Paul sees a lot of pain in store for Wall Street.

The former congressman, and now a chief ambassador to Goldco, said he expects as much as a 50% correction in store for equities.

"A 50% pullback is possible," Paul said in an interview, doubling down on his original June forecast of a 25% correction.

If correct, his forecast would cut the S&P 500 Index in half to 1281, and the Dow Jones Industrial Average would collapse to 11,713.

"When there is excessive credit and artificially low interest rates for any period of time, there always has to be a correction. Since 2008-2009 we have been introduced to uncharted waters, an unbelievable amount of credit created out of thin air, mal-investment and debt going on, so there is a lot of need for a correction out there," Paul said.

As to when the stock party will come to an end?

"Nobody knows the date but it will be devastating to the markets," he said.

"I don't think it's going to be this week but the foundation of a sound economic system and market has eroded...How long can this last? Where people can be fooled into thinking they can have perpetual prosperity by just printing money, I think within a year or two it won't last," the former presidential candidate said.

"Disappointing" Fed Chair Picks

A vocal critic of the U.S. Federal Reserve and the champion behind the Audit the Fed bill, Paul described President Trump's list for the new Fed Chair as "disappointing." He noted that the picks for the helm of the central bank is just, "more of the same."

When probed who his pick would be, Paul said, Jim Grant, founder of Grant's Interest Rate Observer.

"He understands what the Fed shouldn't be doing," Paul explained, adding Grant was his pick when he ran for the presidency of the United States.

Paul ran on three occasions: as the Libertarian Party candidate in 1988 and as a candidate in the Republican primaries in 2008 and 2012.

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