by Ron Paul: US
Out of Yemen
Ron Paul has earned his nickname: "Dr. No."
advocate of limited government, individual liberty and fiscal responsibility
refuses to vote for any bill not directly authorized by the Constitution.
For more than
40 years, the small-town obstetrician has been a major voice of
opposition to big government in general and the Federal Reserve’s
inflationary policies in particular. His latest book, End
the Fed, continues his campaign to end federal fiddling
with the monetary system.
platform has earned Paul a loyal following and respect from both
sides of the aisle and across the generation gap. He has twice been
a candidate for president, in 1988 as the Libertarian flag bearer
and in 2008 as a Republican contender.
up with the energetic 74-year-old doctor just minutes before he
won a key House panel vote to (what else?) audit the Fed.
In End the Fed, you point out once again that the emperor,
the Fed, has no clothes. Yet many Americans assume that only the
Fed can lead us out of the current financial darkness and back into
prosperity and light. Are they wrong?
Yes, they’re wrong. The Fed got us into this mess; they can hardly
solve our problems. All they’re capable of doing is inflating bubbles,
creating price inflation and causing mal-investment. They cause
a boom part of the cycle, but that’s only temporary, and people
do feel good. But the boom part guarantees the inevitable bust part.
So no, they can’t lead us out of this. Eventually, when the bubble
gets so big, just printing money, and creating more spending, and
keeping interest rates artificially low completely interferes with
the market’s ability to correct all the mistakes.
You were ringside when President Nixon removed the gold standard.
How did that portend our current financial quagmire?
That’s a vivid memory for me: Aug. 15, 1971. It was a Sunday night,
and he removed the last linkage to gold, closed the gold window.
He put on wage-and-price controls and 10 percent tariffs. The astounding
thing was, the financial community loved it. The stock market went
up. But it ushered in the decade of the ’70s, which turned out to
be a disaster, so my instincts were right.
From 1971 on,
if you look at any charts on price inflation, expansion of the money
supply, increase in debt, (you’ll find that) so many charts just
explode from the early ’70s until now. Those curves are unsustainable.
The economic laws are demanding that something has to give. The
biggest concern I have is this easy money where central banks can
Paul is a Republican member of Congress from Texas.
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