Former House Representative Ron Paul has shared what he thinks about the financial crisis our country is in right now. He’s saying that this crisis was caused by making too much money (quantitative easing) and keeping interest rates very low for a long time.
Ron Paul on the Financial Hangover From the Federal Reserve’s Actions
Former representative and presidential candidate Ron Paul has been discussing the financial struggles that the U.S. is going through right now. He believes that policies from the Federal Reserve like creating welfare programs are partly to blame for why America is in a difficult financial situation. Specifically, Paul said these policies have caused too many debts to build up, making it harder for everyone in the country.
The reason why things are so tough financially these days is because the Federal Reserve allowed low interest rates and started pumping money into different investments for ten years. All kinds of really bad ideas were funded with this extra money.
Paul said that it was wrong to give too much money out in loans to people who were not going to make profitable investments with them. He also said that because of this, the economy is starting to struggle more as things get tighter. He compared it to having a “hangover” after drinking too much alcohol – when something looks good but suddenly becomes bad.
Ron Paul Praises the US Federal Reserve’s Efforts to Combat Inflation
For a long time, Paul was not sure about the U.S. Federal Reserve and what it did. However, he has now praised its decision of trying to stop inflation by raising interest rates – even though government agents have said that this hurts the banking system.
Paul made a comment on this subject:
Raising interest rates could help us to get back to a more stable economy. The Federal Reserve (the Fed) shouldn’t even exist, as it’s against our laws and isn’t moral, but raising the rates is not actually why we have these troubles. Our issues were caused by having 0% interest rates and issuing money without getting anything in return – essentially borrowing money from nothing.
Paul has been warning people about the bad things that could happen when the U.S dollar stops being the world’s main currency. He thinks this process is going faster than usual because of a group known as BRICS, but it will still take longer than some think for this to become a reality, and there’s no set timeline for it yet.
What do you think about Ron Paul and his opinion related to the Federal Reserve in the U.S.? Let us know your thoughts in the comments section below!