Republican presidential candidate Ron Paul strongly criticized a 25 basis point cut announced today by the Federal Reserve Board. by Walt Thiessen
(libertarian)
Tuesday, December 11, 2007
Calling problems with the housing market and oil prices "the direct result of the Federal Reserve's inflationary policies," Republican presidential candidate Ron Paul lashed out today, accusing the Federal Reserve Board of feeding, "an economic disease caused by a spendthrift Congress enabled by loose monetary policy."
The Fed's move will undoubtedly be praised by other, less responsible presidential candidates. It takes a man who truly understands how destructive our fiat system is to make a strong statement like this.
Paul began his attack on the Fed saying, "America's economic difficulties, especially the problems in the housing market, are the direct result of the Federal Reserve's inflationary policies. While prices for gold, oil, and staple commodities continue to rise, the purchasing power of the dollar for all Americans continues to fall." I wish the other candidates would own up and recognize that America's economic fortunes are currently declining, not rising, and that this decline is primarily due to Fed "pump priming" that has resulted in an average 13% hidden inflation rate over the past 10 years or so.
The reason the inflation is "hidden" is that the Fed simply stopped issuing M3 money supply report in March 2006. Private organizations have continued to track that vital measure, but the Fed itself demonstrated once again that it has no intention of bringing that inflation under control. The more that the Fed pumps up the economy, the bigger the fall that is almost certain to come very soon.
I would not be at all surprised to see America fall into a real recession beginning in early 2008. If that happens, it could dynamically affect the presidential nomination races. If that happens, only Dr. Paul is appropriately positioned to address the issue based on statements he has already made. The other candidates should have to explain to the voters why they were caught so unprepared for it when it happens. America needs a president who understands the true causes of economic decline, not a bunch of poll-chasers who wait for the wind to blow before taking an economic position.
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