Ron Paul Says The Fed is in a Real Fix!
So the Federal Reserve is slowing down on its interest rate increases. After raising rates by 75 basis points (3/4 of a percent) at each of its last four meetings, the Fed opted to pull back to 50 basis points this month.
But it hasn’t yet achieved its objective of wringing inflation out of the US economy. In fact, consumer price inflation remains at a 40-year high.
What gives? Why pull back before the mission is accomplished? It is because the Fed is in a jam, between a rock and a hard place. For a more complete answer, we give the floor to gold and economics expert Congressman Ron Paul who explains the Fed’s bind:
If it [the Fed] raises rates to the levels needed to really combat price inflation, the increase in interest payments will impose hardships on individuals and businesses, as well as raise federal interest payments to unsustainable levels. This will cause a major economic crisis including a government default on its debt causing a rejection of the dollar’s world reserve currency status. Also, if the Fed continues to facilitate federal deficits by monetizing the debt, the result will be an economic crisis caused by a collapse in the dollar’s value and rejection of the dollar’s world reserve status.
The crisis will lead to social unrest and violence, as well as increased popularity of authoritarian movements on both the left and the right. This will lead to government crackdowns on civil liberties and increased government control of our economy. The only bright spot is this crisis will also fuel interest in the ideas of liberty and could even help bring about a return to limited, constitutional government, free markets, individual liberty, and a foreign policy of peaceful trade with all. Those of us who know the truth have two responsibilities. The first is to make the necessary plans to ensure our families can survive the forthcoming turmoil. The second is to do all we can to introduce as many people as possible to the ideas of liberty.
When Dr. Paul says “to make the necessary plans to ensure our families can survive the forthcoming turmoil,” that’s where we come in. That’s what we do.
Make an appointment with your Republic Monetary Exchange gold and silver professional to get updates and review your own plans for the financial turmoil ahead.