Dick Young
At the Ron Paul Institute, former congressman and presidential candidate, Dr. Ron Paul, explains that the Federal Reserve, and the federal government, are in a dilemma of their own making. The Fed could keep rates low, but risks a dollar crisis, threatening a major economic meltdown. If, however, it raises rates too high, the federal government’s debt burden will increase so much the budget will be at risk. In conclusion, he offers a solution to the problem. He writes (abridged):
The only reason Congress’s reckless spending and the Fed’s reckless monetary policy have not yet caused a major economic crisis is the dollar’s world reserve currency status. One of the pillars of the dollar’s status is the use of the dollar in the international oil market. The “petrodollar,” though, may soon be replaced. Saudi Arabia is considering selling some oil for Chinese yuan instead of US dollars. India is considering using Russian rubles and Indian Rupees instead of US dollars in trade with Russia, including for the purchase of Russian oil. This will help get around US sanctions. Concerns about the stability of the US economy, combined with increasing resentment of our foreign policy, will cause other countries to abandon the dollar.
Economic instability can lead to political instability, violence, and an increase in support for authoritarian movements. A way to avoid this is for those of us who know the truth to spread the ideas of liberty. When a critical mass of people demands fiscal responsibility and constitutionally limited government, the politicians will comply.
To put an end to the welfare-warfare state, Congress can drastically reduce the military budget, end all corporate welfare, and shut down all unconstitutional cabinet departments. The savings can be used to pay down debt and to support those truly dependent on government programs while responsibility for providing assistance returns to local institutions and private charities.
Congress should also restore a sound monetary policy by auditing, then ending, the Fed, as well as by repealing both legal tender laws and capital gains taxes on precious metals and cryptocurrencies. Ending the era of the welfare-warfare state and fiat currency can lead to a transition to a new era of liberty, peace, prosperity…
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