Ron Paul Says The Federal Reserve’s ‘Decade Of Near-Zero Rates’ Caused Today’s Financial Crisis

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Former House Representative Ron Paul presented his position regarding the financial crisis the United States is currently facing. Paul said the continued application of quantitative easing (QE), a policy used to increase the money supply, and decades of near-zero interest rates, are what have fueled the current financial crisis to which states States face.

Ron Paul Believes Federal Reserve Policies Created the Current US Financial Crisis

Ron Paul, former Representative and presidential candidate, recently spoke about the financial crisis facing the United States. According to him, the policies that the Federal Reserve has applied to maintain a welfare state at the cost of creating deficits have created today’s financial difficulties for the country.

Paul said:

The current financial woes stem from the Fed’s decade of near zero rates and quantitative easing (QE). These created a decade of unprofitable investments. Every bad idea imaginable received funding.

Paul criticized lax monetary policies which he said allowed the creation of bad debt with credits going to unprofitable investments, and this situation is now becoming unsustainable in the face of tightening economic conditions. Paul explained that “as much as a ‘hangover’ after drinking too much alcohol is painful, it is painful when false prosperity collides with economic reality”.

“The Fed is unconstitutional” but is part of the solution

Paul, a longtime critic of the validity of the US Federal Reserve’s existence and its faculties, praised the action of the institution which is currently trying to contain inflation by raising interest rates, even if this affected the banking system according to the government. spokesperson.

In this regard, Paul remarked:

Rising interest rates under Powell are the cure and the way back to some form of economic common sense. The Fed should not exist. It is unconstitutional and immoral. But rising interest rates are not the source of our problems. The big mistake was 0% rates and QE.

Paul alerted the public to the progress of the de-dollarization process and the effects the loss of reserve currency status could have on the United States. While he thinks the de-dollarization process has accelerated recently, with the recent activities of the BRICS bloc, he said it will likely take longer than some predictions indicate and there is there is no set timetable for this to happen.

What do you think of Ron Paul and his opinion on the Federal Reserve’s role in the US financial crisis? Tell us in the comments section below.

Sergio Goschenko

Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late in the game, entering the cryptosphere when the price surge happened in December 2017. Having a background in computer engineering, living in Venezuela and impacted by the cryptocurrency boom at social, it offers a different point of view. on the success of crypto and how it helps the unbanked and underserved.

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