There was a time when retired congressman Ron Paul was skeptical of cryptocurrencies, however, he eventually turned in favor of the technology.
Now, he trusts it so much so that he is propagating the abolishment of Federal Reserve and adopt cryptocurrencies as an alternative. This reportedly comes after the reserve increases the baseline interest rate quarter of a percentage more, from 2.2% to 2.5%.
Paul served several terms as a Republican in a Houston, Texas-area congressional district, but also ran for president on the Libertarian Party ticket in 1988, as well as making a bid for the Republican nomination in 2008 and 2012. Now retired from public office, Paul continues to speak out on economic issues.
His biggest problem is the “quantitative easing” policy the Federal Reserve adopted in the aftermath of the 2008 financial meltdown, which Paul contends created the
“biggest bubble in the history of mankind. It’s also important to understand the original cause of the problem, and that is the Federal Reserve running up the debt and letting politicians spend money.”
The Federal Reserve pumped about $4.5 trillion into the economy after the 2008 financial crisis.
Essentially, what Ron Paul is trying to say is that the Federal Reserve should let the free market dictate the interest rates instead of artificially manipulating it. On the same issue, he tweeted:
The Fed has NO IDEA what rates should be.
The Fed manipulates prices, distorts the economy, and makes decisions by looking at the "data" of a distorted economy.
Central planning produces a world of economic delusions.
America needs to get back to reality.
End The Fed! pic.twitter.com/achfl4uIQ8
— Ron Paul (@RonPaul) December 19, 2018
He has been continuously saying that the Federal Reserve’s forced manipulation of interest rates creates an artificial economic which he compares to as an illusion.
“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.”
As Ron Paul is a liberatarian, he obviously opposes government intervention in the free market. Libertarian.
The same philosophy has led him to believe in Bitcoin. Earlier, in 2017, he had a few words about the digital asset:
“Bitcoin is very exciting…but [bitcoin investors] don’t have a long-term perspective. What’s it going to be like in 10 years? Nobody knows. But we have a pretty good idea of where gold will be, in a general sense.”