Liberty Maven

In a rebuttal to a recently published article in Forbes magazine Ron Paul uses the opportunity to plainly educate the masses regarding the Federal Reserve.

This article should be required reading for every single person in America. Unfortunately, only those who subscribe to Forbes and read it online will have the chance to see it. The unsupportive article by Tom Cooley (of Ron Paul’s HR1207 to audit the Federal Reserve) because the Fed should be “boring” left me a bit puzzled. I’m glad there are at least 165 lawmakers on Capitol Hill who support a Fed audit, with more likely to come.

Read the full Ron Paul article here. Below is an excerpt.

The Federal Reserve’s recent and unprecedented actions in the realm of monetary policy have provoked a backlash among the American people. Trillions of dollars worth of loans and guarantees have been provided to Wall Street firms, while Main Street Americans suffocate under harsh taxation, the prospect of higher debt levels and increasing inflation. These events have awakened many Americans to problems with the Fed’s loose monetary policy, the bubbles it has created in the past and the potential hyperinflation it might cause in the future.

One of the fallacies of modern economics is the idea that a central bank is required in order to keep inflation low and promote economic growth. In reality, it is the central bank’s monetary policy that causes inflation and depresses economic growth. Inflation is an increase in the supply of money, which in our day and age is directly caused or initiated by central banks. All other things being equal, inflation results in a rise in prices. A so-called “mild” rate of inflation of 3% per year leads to a 56% rise in prices over a 15-year period. Even a “low” rate of inflation of 2% per year leads to a 35% rise over that same period. How is that conducive to long-term growth?