Ron Paul: The Federal Reserve: More Lethal than Coronavirus

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: 

Last week the Federal Reserve announced it will keep interest rates at or near zero until the economy recovers from the government-imposed shutdown. Following this announcement, Federal Reserve Chairman Jerome Powell urged Congress and the Trump administration to put aside any concerns about the deficit and spend whatever it takes to stimulate the economy and combat coronavirus.

The Federal Reserve previously announced it would make unlimited purchases of Treasury securities, thus encouraging Congress and the president to increase spending and debt. With some members of Congress talking about another multi-trillion-dollar stimulus bill, and with President Trump proposing a two trillion dollars infrastructure plan as a way to get Americans back to work, it is obvious, and not surprising, that Congress and President Trump gleefully agree with Powell’s advice.

Increasing the purchase of federal debt is not the only action the Fed has taken in a desperate attempt to keep the economy afloat. Since the coronavirus lockdowns began in early March, the Fed has greatly expanded its balance sheet. The Federal Reserve has also launched an unprecedented program to “loan” money directly to businesses.

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One thought on “Ron Paul: The Federal Reserve: More Lethal than Coronavirus

  1. SocraticGadfly

    CAPITALISM is more lethal than the coronavirus. The Fed is only part of, and in a Venn diagram only partially overlapping with, the Fed.

    Oh … just a bit of historic fact.

    “Fiat money” has existed for 1,000 years.

    Gold is actually “fiat” in that it has little intrinsic value.

    If you want to denominate money, why not either oil or uranium.

    Non-libertarians, you can thank me now.

    Libertarians who aren’t goldbugs, you can thank me soon enough.

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