I like Ron Paul, but he, like most of us, isn't perfect and there are some questonable statements and conclusions in here. Here's my parsing...
Indaswamp wrote:The Federal Reserve...
Statement of Congressman Ron Paul
Artificially low interest rates are achieved by inflating the money supply.
I thought inflating the money supply lead to inflation and higher interest rates. How'd I miss that one? Could have sworn we experienced this in the late '70 & 80's...
Indaswamp wrote:Low interest rates penalize the thrifty and those who save are cheated. It promotes consumption and borrowing over savings and investing. Manipulating interest rates is an immoral act. It’s economically destructive.
Being thrifty is always a good practice.
Low interest rates encourages investment which stimulates the economy so hard to see the destructive proposition put forth.
Immoral? Yikes! Sounds a bit incendiary and a non-sequitur linkage to morality in general. This is economics and business.
Indaswamp wrote:Manipulating the money supply and interest rates rejects all the principles of the free market.
not sure Adam Smith would agree. The genreal intent is to suppress the highs and lows of the economy, which is when people get hurt. So what does he consider "sound" money?
Indaswamp wrote:Inflation is the most vicious and regressive of all forms of taxation. It transfers wealth from the middle-class to the privileged rich. .... Inflating is never a benefit to freedom loving people. It destroys prosperity and feeds the fires of war. It is responsible for recessions and depressions.
The first statementis fine, although it's not a tax and it steals most from those with the least, but it does transfer wealth. Next statement is where the wheels come off. Some inflation, very little, means you earn by saving (some interest on savings is good) so this conflicts wih this earlier statement: "Low interest rates penalize the thrifty and those who save are cheated."
Indaswamp wrote:Inflation has been used to pay for all wars and empires. And they all end badly. Inflationism and corporatism engenders protectionism and trade wars. It prompts scapegoating: blaming foreigners, illegal immigrants, ethnic minorities, and too often freedom itself for the predictable events and suffering that result. Besides, the whole process is unconstitutional. There is no legal authority to operate such a monetary system. So let’s stop it. Let’s restore a policy of prosperity, peace, and liberty.
The time has come. Let’s End the Fed.
Okay this is pandering and blemaing everything on one issue, which in itself doesn't make sense. I'm not defending the FED but I am suggesting we look at hyperbole critically, question some of the assumptions and assertions, and think for ourselves.