Former Congressman Ron Paul took the Federal Reserve to task in a Twitter thread on June 5, 2020.
Paul tweeted, “The Federal Reserve has been increasing the supply of dollars at levels not seen in at least 40 years. Even the money pump during the 2008 financial crisis pales in comparison to today’s central bank counterfeiting.”
The former Congressman added:
Just as the lockdowns will produce tremendous ongoing problems, the Fed’s reckless money-printing is setting in motion an economic debacle that one can hardly imagine. Central planning always fails. The Fed is certainly not an exception to the rule.
Paul is particularly worried about the Fed’s monetary intervention and the economic downturn caused by the Wuhan virus-related shutdowns
The former Congressman from Texas believes that the Fed is printing money at unprecedented rates.
The Fed has taken decisive action since March when pandemic related uncertainty did a number on markets.
On March 23, the Fed pushed the envelope by announcing unlimited quantitative easing (QE) after its decision to cut interest rates to zero.
Alex Dovbnya of U Today mentioned how Paul believes that the “wall of cash that the Fed built in 2008 to cushion the blow from the 2008 financial crisis cannot hold a candle to its most recent ‘counterfeiting effort’.”
The sentiments expressed in Paul’s latest tweets are largely shared by people in the Bitcoin community.
Galaxy Digital CEO Mike Novogratz asserted that ‘money growing on trees’ makes a strong case for buying alternative currencies such as Bitcoin.
Novogratz originally dismissed Bitcoin as a ‘big bubble’ in December 2017. However, he changed tune in July 2019 when he stated that he was ‘all for cryptocurrencies’ and described them as a ‘great idea’ during an interview with CNBC’s Squawk Alley.
In November of 2019, cryptocurrency figure Bobby Lee gave Paul his first Bitcoin during the 2019 Litecoin summit, where the former Republican presidential candidate was a keynote speaker.
Although it’s still in its developing state, Bitcoin has a lot of promise in offering alternatives to present-day central banking. Hopefully, it can turn into a viable alternative to fiat money. But for now, gold remains king.
