Unlike other commentators, former Congressman Ron Paul isn’t afraid of telling the truth.
Paul believes that negative interest rates are on the horizon, and the Federal Reserve will not be able to stop them. This does not bode well for the American economy.
“We will join the rest of them and go to total negative rates in hopes that that will be the solution,” Dr. Paul said on CNBC’s “Futures Now” this week.
Dr. Paul has made a long and illustrious career warning about the Federal Reserve’s meddling in the economy. He believes that the Federal Reserve’s policies are absolutely useless and even detrimental in America’s current bubble environment and that last week’s Fed meeting will not make things better for Americans.
“You can’t predict exactly where the creation of credit goes,” Paul said. He added, “We have a ton of inflation with all that QE [quantitative easing]. And, every time you lower interest rates below market levels and create new credit, that’s a bubble.”
Paul does concede that it’s impossible to predict when markets will collapse and the bubbles finally burst. “You don’t know this precise time. But you know it can happen,” he said. However, this illusory economy can only last for so long.
Paul understands that central banks enact a form of arbitrary price controls through interest rate manipulation which causes distortions in financial markets. In the end, this won’t stop the inevitable collapse.
Central banking may seem esoteric to the layman, but it still obeys the same basic rules of economics. Given the politicized nature of central banking and its anti-competitive features, economic well-being is not in the interest of monetary policymakers. It is merely to prop up our increasingly flimsy warfare and welfare state.
Eventually this economic mirage will disappear and millions of everyday Americans will pay dearly for their elites’ malfeasances.
