Cutting interest rates, expanding the balance sheet, and producing the fourth installment of quantitative easing (just don’t call it QE!), the Federal Reserve seems to be in panic mode, even during the boom phase of the business cycle.
But is the Fed doing too much? Former Rep. Ron Paul (R-TX) thinks it is.
He told CNBC on Friday:
“That’s true socialism. If it is in the monetary system, that’s a socialist monetary system. The market is trying to tell us that they’re all messed up and they can’t manage it,” he said.
Paul believes the situation is “insane.”
“You know, the Fed is in there now, and there are trade negotiations and people feel good, but we don’t even know how they’re going to feel at the end of the day, let alone next week,” Paul said. “It is up and down, and up and down. It is central economic planning, mainly through the manipulation of money and credit, and then we get into manipulating trade.”
In the end, Dr. Paul thinks an economic collapse is inevitable.
“I believe we’re going to see a collapse that will force us to reassess the monetary policy and that will be very disruptive,” he noted.
Indeed, long-term the United States is in a poor situation. Who knows what the next few months bring?
Leave a Comment