Pro-Bitcoin Ron Paul Savages ‘Total Failure’ Fed Reserve for ‘Flat-Out Broke’ America
Former Republican Presidential hopeful and former U.S. Rep. Ron Paul (R-TX) has slammed the Federal Reserve as a 'total failure'. | Source: Kirkpatrick/Getty Images/AFP
By CCN.com: Dr. Ron Paul, former twelve-time US Congressman and three-time presidential hopeful, has stated that money comes from the market, not from Central banks. Ron Paul made the comments during an interview at CoinDesk’s Consensus 2019 in New York City last week.
Paul, who also spoke a meetup called Satoshi Square and a smart contract activist hackathon while in NYC attending Consensus, said that central banks were not the first thing to happen 6,000 years ago at the dawn of civilization.
“No matter what system they have, the government comes in to get control because that is where the power is,” he said.
Regulations and Banning Crypto
“Detail-wise I don’t know what they are doing yesterday, today but I do know that they are watching,” he added. “They are always watching because If you look at monetary history, governments always want and work for monopoly control of the monetary system, whether is gold, silver or peanut. And they’ll not give cryptocurrencies free ride.”
Paul, who has delivered thousands of babies as an OB-GYN, explained that his goal is to provide the environment necessary to come up with an alternative to central banks.
“The more monopolized a currency is the worse [off] it is, and this is what has happened, and this is how to expand a government,” he said. “You can’t expand the government without a system like the Federal Reserve.”
This is not the first time he has called to abolish central banks. He called for it after it raised the baseline interest rate a quarter of a percentage point, to a range of 2.25% to 2.5%, in mid-December 2018.
According to Ron Paul, who hosted a book signing at Consensus 2019 the Federal Reserve should let the free market discover interest rates. But, he says a big problem is how to rein in and make sure the government does not prevent us from developing a new, alternative system – potentially based off cryptocurrencies like Bitcoin and others.
Reacting to the call of Representative Brad Sherman (D-CA), the US Congressmen who called to ban crypto, Ron Paul said that it is very symbolic of tyrants and authoritarians. He also said that people like Sherman are driven by power. It ultimately reflects what Washington is all about.
He cited bans on smoking cigarettes and marijuana as evidence that US politicians are obsessed with power and believe they know what is suitable for everyone whether it is social, religion or economic life.
The Rich Control Authoritarian Societies
The small government, free-market proponent also revealed that autocratic systems are run by the wealthiest in society to suppress the poor. Most of the time, these well to do people pretend they are there for the poor.
“It’s always the richest people that run the authoritarian societies,” said Paul. “Whether it’s a socialist or fascist system, it is the richest people controlling the system and pretending they are helping the people.”
The System Isn’t Sustainable
Paul thinks the primary reason crypto is a big issue here, is that it presents a challenge to the status quo of the monetary system. The existing system, however, isn’t viable, is out of control, and the amount of debt has piled up over the year.
“The Federal Reserve is a total failure in its finances, whether it’s social welfare, military welfare or corporate welfare,” he said. “We are flat out broke. We’ve been broke for a long time.”
He understands there will be a ‘liquidation’, and the debt has to evaporate because you can’t keep piling it on and on. That’s why the market is rocky now, he says. The former Congressman believes a few people at Consensus recognize that.
To him, the market can solve this situation and that is why he wants cryptocurrencies and people with other ideas to thrive in a free society. The answer is not to modify the Federal Reserve. That’s an evil we’ll have to deal with, he told Consensus host Pete Rizzo.
Paul’s Understanding of Bitcoin
Paul, a staunch Libertarian, first made public comment on cryptos like bitcoin in 2013. When asked if he understands blockchain technology, he said he was very enthusiastic about the alternative competition to fiat currency. In the end, he believes the challenge for mankind is achieving freedom of choice in a free market.
“I want people to come to this kind of conferences and have the opportunity to develop alternative means” he emphasized, motioning around at Consensus 2019 .
Gold vs Bitcoin
When discussing bitcoin in the context of gold, Paul pointed out that it is all about competition, which is very imperative for monetary freedom.
“I think that’s what freedom is all about,” he said. “You call it marketing. I call it a competition of ideas and sometimes marketing comes without crowds getting together and sharing intelligence. There is always marketing by people by word of mouth. How do you think they are surviving in Venezuela? Who knows – they might even have Bitcoin in Venezuela. You know, they make their choices.”
Paul Says Fed Distorts Economy
CCN.com reported last October that Paul accused the Fed manipulating interest rates, and putting the globe at risk for a recession. Paul believes that central planning produces a world of economic delusions.
“It is likely that the next Fed-created recession will come sooner rather than later,” Paul said at the time. “This could be the major catastrophe that leads to the end of fiat currency.”
He added: “This can create an illusion of prosperity. Eventually, reality catches up to the Federal Reserve-created fantasies. When that happens, there is a recession or worse, leading the Fed to start the whole boom-and-bust cycle over again.”
