The Fed Can’t Cure the Problems They Cause

by | Jun 19, 2017

The Fed Can’t Cure the Problems They Cause

by | Jun 19, 2017

The Federal Reserve claims it can continue “tightening” — even though it is still leaving interest rates at historically low levels — and begin unwinding its balance sheet, because the economy is “improving” and “will continue to improve.” But that is only true if one believes the government-manipulated unemployment and inflation statistics which, for example, do not count the record number of Americans who have withdrawn from the labor force.

Eight years after the market meltdown, the US economy remains on the brink of another major meltdown. Student loans, automobiles, and even housing are just a few of the bubbles whose bursting could send the fragile economy into another major recession. Of course, the largest bubble is the government bubble, which will dramatically increase thanks to the administration’s planned spending increases on militarism abroad and make-work infrastructure projects at home.

Instead of just winding down the Feds balance sheet, Janet Yellen should be working with Congress and the administration to unwind the system of fiat currency. A good place to start is with passage of the Audit the Fed bill.

This statement was originally published at The Campaign For Liberty.

Ron Paul

Ron Paul

Ron Paul is a doctor, author, former member of Congress, Distinguished Counselor to the Mises Institute, and Chairman of the Ron Paul Institute for Peace and Prosperity.

View all posts

Our Books

Recent Articles

Recent

Strategic Ambiguity (If We Must)

Strategic Ambiguity (If We Must)

In recent years, critics on both sides of the aisle have taken aim at the longstanding policy of strategic ambiguity toward Taiwan. They argue that Washington should abandon ambiguity and embrace “strategic clarity,” explicitly pledging to fight China over Taiwan....

read more
Can Trust Exist Between the United States and Iran?

Can Trust Exist Between the United States and Iran?

One of the biggest obstacles to peace negotiations with Iran is history. Three quarters of a century of experience with the United States has taught Iran caution, starting with the 1953 betrayal that took out the popular and democratically elected leader, Mohammad...

read more

Pin It on Pinterest

Share This