Today’s financial hardships stem first, from the Fed’s unconstitutional existence, and second from the Fed’s decade of near 0% interest rates and QE. Those disastrous policies created a decade’s worth of bad and uneconomic investments. Rising interest rates under Powell are the cure to those very bad decisions. But the “hangover” is that all of the bad investments piled up since 2008 become exposed. Of course, there are calls to turn the printing presses back on, which are calls to perpetuate the original problem and make it even worse. The Fed has no business fixing interest rates in any direction, or counterfeiting even a single dollar, but the big blunder was 0% rates and QE. That made today’s hardships inevitable.
The Ron Paul Institute for Peace and Prosperity is a project of Dr. Paul’s Foundation for Rational Economics and Education (F.R.E.E.), founded in the 1970s as an educational organization. The Institute continues and expands Dr. Paul’s lifetime of public advocacy for a peaceful foreign policy and the protection of civil liberties at home. Visit http://www.ronpaulinstitute.org