Ron Paul has been one of the best politicians that we’ve had in this country. It’s a shame that he never won the presidential election because he would have likely been an even better president than Donald Trump was.
We currently have his son as a Senator at the moment, and while he is a good Senator, he’s not quite the same caliber as his father.
Recently, Ron Paul wrote a response to the most recent rate hike of 0.75, which was the largest single rate hike since 1994 under the Clinton administration (no surprise it came under a Democrat) in which he warns of what a grim future lies ahead for us, because this isn’t going to stop anytime soon.
“This latest rate increase will only raise rates to where they were before the lockdowns led the Fed to embark on a historic money-creating spree,” Paul wrote. “The Federal Reserve cannot increase rates to anywhere near the level they would be in a free market because doing so would increase interest payments to unsustainable levels for debt-ridden consumers, businesses, and the federal government.”
Paul also dug into the relationship between interest rates and government spending, suggesting that government debts are one of the primary reasons the Fed has failed to move quickly on inflation.
“Increases of a couple percent or less in interest rates can cause big increases in federal debt payments. The resulting new spending puts pressure on the supposedly ‘independent’ Fed to maintain low rates, making it more likely the Fed will fail to tame inflation but succeed in resurrecting stagflation, combining price inflation with a recession. This new stagflation will make the 1970s look like a golden era.”
One important thing that he also pointed out is that almost every time the Fed has raised interest rates this much this fast, it actually caused a recession.
This is just a terrible time to go through a recession because we still have to recover from these last two years, plus there is already a shortage of several items. We really need that 1950s work ethic to dig us out of this hole, but I doubt we’ll see that under this senile old man’s (Joe Biden) leadership.