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IPFS News Link • Federal Reserve

Ron Paul: Fed's "Dollar Destruction" and Moral Crisis


Ron Paul's recent op-ed from the Ron Paul Institute for Peace and Prosperity, reprinted in the Orange County Register, breaks down the profound damage caused by central bank money printing: it pits savers against speculators, encouraging consumers to use debt to fund basic needs since their savings are constantly evaporating due to monetary debasement.

The result? Ballooning consumer debt and over-dependence on credit cards, while saving for the future becomes a zero-sum game:

"…even though Americans' nominal wages have increased, their real wages have declined as their dollars buy less."

The Fed's "dollar destruction," as Paul calls it, is something that Americans are so accustomed to, that we're addicted to it even as it hurts us. Without endless money printing, the welfare state and forever wars would no longer have financing — but with so many Americans addicted to cheap loans and widespread welfare programs, sound money would initially be rejected by many savers. Like a baby who is accustomed to eating a bag of candy every day, destroying its health, many would be enraged to discover their social "support" being taken away, even if it means securing some chance at prosperity for future generations in the form of gold-backed money.