It’s not prophecy when the outcome is completely obvious:
The Federal Reserve’s low interest rate policy is a big mistake; it is not a panacea. Artificially low interest rates are achieved by inflating the money supply. 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.
The policy of artificially low interest rates caused our problems and therefore cannot be the solution. The market rate of interest is crucial information for the smooth operation of the economy. A central bank setting interest rates is price fixing and is a form of central economic planning. Price fixing is a tool of socialists and destroys production. Central bankers, politicians, and bureaucrats can’t know what the proper rate should be. They lack the knowledge and are deceived by their own aggrandizement.
This isn’t ideology, Ron Paul is merely telling his fellow congressmen what the facts of life are. The
stimulus packagerecovery plan won’t work. It can’t work. It’s dependent upon a deeply flawed economic model.