'Yellen Must Unwind System Of Fiat Currency' - Ron Paul On Fed Rate Hike
U.S. Federal Reserve Chair Janet Yellen should be working with the American government to “unwind the system of fiat currency” instead of just reducing the balance sheet, Ron Paul said in a statement.
Former congressman and two-time presidential candidate Ron Paul criticized the Fed’s announcement on Wednesday, questioning the central bank’s “claims” that it is continuing to tighten because of recovering economy.
“The Federal Reserve claims it can continue ‘tightening’ -- even though it is still leaving interest rates at historically low levels -- and begin unwinding its balance sheet, because the economy is ‘improving’ and ‘will continue to improve.’ But that is only true if one believes the government-manipulated unemployment and inflation statistics which, for example, do not count the record number of Americans who have withdrawn from the labor force,” Paul said in a statement.
Paul believes the U.S. economy remains on the “brink of another major meltdown.” He cited major bubbles affecting student loans, automobiles, and housing.
“Of course, the largest bubble is the government bubble, which will dramatically increase thanks to the administration’s planned spending increases on militarism abroad and make-work infrastructure projects at home,” he wrote.
“Instead of just winding down the Feds balance sheet, Janet Yellen should be working with Congress and the administration to unwind the system of fiat currency. A good place to start is with passage of the Audit the Fed bill,” Paul said.