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Ron Paul: Will Coronavirus End the Fed?

Former Congressman Ron Paul was the 1988 presidential nominee of the Libertarian Party. His two runs for the Republican presidential nomination in 2008 and 2012 brought notice to the libertarian movement.  He published the following editorial on the Ron Paul Institute for Peace and Prosperity site today: 

September 17, 2019 was a significant day in American economic history. On that day, the New York Federal Reserve began emergency cash infusions into the repurchasing (repo) market. This is the market banks use to make short-term loans to each other. The New York Fed acted after interest rates in the repo market rose to almost 10 percent, well above the Fed’s target rate.

The New York Fed claimed its intervention was a temporary measure, but it has not stopped pumping money into the repo market since September. Also, the Federal Reserve has been expanding its balance sheet since September. Investment advisor Michael Pento called the balance sheet expansion quantitative easing (QE) “on steroids.”

I mention these interventions to show that the Fed was taking extraordinary measures to prop up the economy months before anyone in China showed the first symptoms of coronavirus.

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One Comment

  1. Tony From Long Island Tony From Long Island March 31, 2020

    Ron (or someone he allowed to speak for him) called this all a hoax. I have no further use for anything else he says.

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