Ron Paul is without a doubt one of the most talented politicians that this country has ever produced. It is unfortunate that he was never triumphant in the race for the presidency because it is highly likely that he would have been an even more effective leader than President Trump was.
We currently have his son serving as a Senator, and while he is a good Senator, he is not quite on par with his father.
Recently, Ron Paul penned a response to the most recent rate hike of 0.75, which was the largest single rate hike since 1994 under the Clinton administration (it should come as no surprise that it occurred under a Democrat). In this response, he warns of what a bleak future lies ahead for us, because there is no sign that this will stop any time 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.