According to Ron Paul, correction of the current market is foreseeable. However, he says stocks are likely to drop by as much as 50%.

Paul, who is a libertarian and former U.S. congressman, supports his correction call back in August, when he was insisting that the three major indices could lost up to half of their value within just a year. However, stocks were either at or near record highs last Friday, adding to an already multiple week winning streak.

Ron Paul states this may be due to the Federal Reserve, which is ready to reverse more crisis-ready monetary policies. However, markets are confident that the Reserve will tighten their rates in December.

According to CNBC:

“They’re in a quandary, they’re in a total dilemma,” Paul said on CNBC’s “Futures Now” last week. “I think what they’re doing is totally unmanageable, and everything they do contributes to mal-investment and distortion.”

Ron Paul has been a critic of stimulative monetary policies for a very long time, and warns of the Fed’s dangerously low interest rates. He feels that, by controlling interest rates to be this low, you will ultimately be distorting everything else, too. And, since nobody knows which part of the market will turn out the worst, trouble is going to happen, and we won’t know when until it does.

Paul also worries that the dollar is under threat, and a replacement may soon be in order. He states: “There will be a day people lose confidence in the dollar, and if you look at foreign policy advances and some [of the other geopolitical events going on], I think we’re very vulnerable,” he said.

This recent call is even more intimidating than Paul’s previous prediction – originally, he was stating the stock market might plummet just 25%.

Despite this, the S&P 500 Index has risen 30% since July of 2014, even though Paul was warning that the market was ready to crash.