“The Fed Doesn’t Give us Nirvana!”
Ron Paul says that the Federal Reserve is deceiving the American people about the economy. In an interview with David Asman on Fox Business, Paul explained why the Fed’s decision not to taper off its $85 billion in bond purchases reveals their true feelings about our economic state.
Asman discussed how the average American’s income is flat and how inflation is eating away at their income’s value. Paul agreed and argued that it’s wrong for the Fed to be able to just eat away at the value of people’s savings arbitrarily. It’s wrong to punish savers with inflation.
Asman agreed and asked what was next. Paul replied that he believed that we will one day experience a burst of the bond bubble which will be a major catastrophe for the US dollar. Interest rates will rise and we will have a major adjustment.