Uncategorized

Ron Paul: Fed Chair Is Right, She Can’t Predict The Future

BUT THE FAILURE OF CENTRAL BANK’S MONETARY POLICIES IS CLEAR … || By RON PAUL  || This week I found myself in rare agreement with Janet Yellen when she admitted that her economic predictions are likely to be wrong.  Sadly, Yellen did not follow up her admission by handing in her…

BUT THE FAILURE OF CENTRAL BANK’S MONETARY POLICIES IS CLEAR …

ron paul|| By RON PAUL  || This week I found myself in rare agreement with Janet Yellen when she admitted that her economic predictions are likely to be wrong.  Sadly, Yellen did not follow up her admission by handing in her resignation and joining efforts to end the Fed.  An honest examination of the Federal Reserve’s record over the past seven years clearly shows that the American people would be better off without it.

Following the bursting of the Federal Reserve-created housing bubble, the Fed embarked on an unprecedented program of bailouts and money creation via quantitative easing (QE) 1, 2, 3, etc.  Not only has QE failed to revive the economy, it has further damaged the average American’s standard of living while benefiting the financial elites.  None other than Donald Trump has called QE “a great deal for guys like me.”

The failure of quantitative easing to improve the economy has left the Fed reluctant to raise interest rates.  Yet the Fed does not want to appear oblivious to the dangers posed by keeping rates artificially low.  This is why the Fed regularly announces that the economy will soon be strong enough to handle a rate increase.

There are signs that investors are beginning to realize that the Fed’s constant talk of raising rates is just talk, so they are looking for investments that will protect them from a Fed-caused collapse in the dollar’s value.  For example, the price of gold recently increased following reports of stagnant retail sales.  An increased gold price in response to economic sluggishness may appear counterintuitive, but it is a sign that investors are realizing quantitative easing is not ending anytime soon.

The increase in the gold price is not the only sign that investors are interested in hard assets to protect themselves from inflation.  Recently a Picasso painting sold for a record 180 million dollars.  This record may not last long, as an additional two billion dollars worth of art is expected to go on the market in the next few weeks.

Another sign of the increasing concerns about the dollar’s stability is the growing interest in alternative currencies.  Investing and using alternative currencies can help average Americans, who do not have millions to spend on Picasso paintings, protect themselves from a currency crisis.

Congress should ensure that all Americans can protect themselves from a dollar crisis by repealing the legal tender laws.

Congress should also take the first step toward monetary reform by passing the Audit the Fed bill.  Unfortunately, Audit the Fed is not a part of the Federal Reserve “reform” bill that was passed by the Senate Banking Committee.  Instead, the bill makes some minor changes in the Fed’s governance structure.  These “reforms” are the equivalent of rearranging deck chairs as the Titanic crashes into the iceberg.  Hopefully, the Senate will vote on, and pass, Audit the Fed this year.

The skyrocketing federal debt is also a major factor in the coming economic collapse.  The Federal Reserve facilitates deficit spending by monetizing debt. Congress should make real cuts, not just reductions in the “rate of growth,” in all areas.  But it should prioritize cutting the billions spent on the military-industrial complex.

Some say that eliminating the welfare-warfare state and the fiat currency system that props it up will cause the people pain.  The truth is the only people who will feel any long-term pain from returning to limited, constitutional government are the special interests that profit from the current system.  A return to a true free-market economy will greatly improve the lives of the vast majority of Americans.

Ron Paul is a former U.S. Congressman from Texas and the leader of the pro-liberty, pro-free market movement in the United States. His weekly column – reprinted with permission – can be found here.

***

Related posts

Uncategorized

Murdaugh Retrial Hearing: Interview With Bill Young

Will Folks
State House

Conservative South Carolina Lawmakers Lead Fight Against CRT

Mark Powell
Murdaughs

‘Murdaugh Murders’ Saga: Trial Could Last Into March

Will Folks

5 comments

Bible Thumper May 26, 2015 at 4:25 pm

Dumb Statements By Ron Paul
The increase in the gold price is not the only sign that investors are interested in hard assets to protect themselves from inflation.
There are ups and downs in Gold prices every week, but there have been no major upward price changes recently. Look for yourself. You can change the time period. On the ten year view, you see gold is near it’s five year low.
http://m.nasdaq.com/markets/gold.aspx?timeframe=10y

Another sign of the increasing concerns about the dollar’s stability is the growing interest in alternative currencies.
Much of the recent interest in other currencies by governments is because of the dollars strength not weakness. Many countries who use dollars or peg their currency to it are finding it more difficult to export. Those who are trying to preserve their wealth crave dollars so much that they are willing to accept negative interest rates because it’s better than holding other currencies as they decline. The dollar index last closed within $4.00 of its 52 week high. Change the time span of the link here and you will see the dollar is strong.
http://www.marketwatch.com/investing/index/dxy

Congress should ensure that all Americans can protect themselves from a dollar crisis by repealing the legal tender laws. The “reforms” (passed by Senate committee) are the equivalent of rearranging deck chairs as the Titanic crashes into the iceberg.
Ron Paul repeats the same faulty predictions. If the data is bad, then things will get worse. If the data is good, then it’s an irrational bubble getting ready to pop. In any set of data Ron Paul can pick out one bad day or week and hand his entire theory on it. The “Law of Averages” means he’ll be correct occasionally.

Reply
Too much time on your hands May 26, 2015 at 5:23 pm

TL;DR

Reply
Bible Thumper May 26, 2015 at 5:42 pm

You should have skipped Paul and just read mine.

Reply
M2000 May 26, 2015 at 11:59 pm

But Dr. Paul, you often depict the FED to be an evil entity…have you not? Isn’t that inconsistent with Dr. Paul here?

Reply
KristinaMDavenport May 27, 2015 at 4:44 am

??????? $73.. per-hr @mi22//

/.

???https://WorldStarHipHopGroups.com/may/standard

Reply

Leave a Comment