Tuesday, March 15, 2011
Ron Paul: Hyperinflation coming...
Amid speculation of a third bid for the Presidency, Congressman Ron Paul revealed that growing concerns over U.S. monetary policies would drive him into the race. In a no-holds-barred interview on KSCO AM 1080 with the host of The Costa Report, Rebecca Costa, Paul said, "I think the wave of the future is inflation. It's just beginning - to the point that the dollar will be rejected as the reserve currency of the world. If there's a panic out of the dollar you will see the destruction of the dollar rather quickly. The end stages of a currency comes quickly." He continued, "We've seen this in Zimbabwe, Mexico and Central America. Today there's an illusion and false trust in our money."
According to Paul the reason for rising prices is the U.S. government's own monetary policy, "Inflation comes from the Federal Reserve printing money." He added, "The price of education is high because of inflation, medical care is the same thing - all of this injection of money (from the Federal Reserve) raises prices."
When asked about the relationship between wage inflation and recent limitations on collective bargaining for state workers in Wisconsin, Paul responded, "When wages are artificially high, it distorts things - it's unpopular to lower wages, so we just inflate (them), and the REAL wage goes down. Sure, we don't cut the wage, but it buys so little."
The outspoken Congressman offers a simple antidote to hyperinflation. "Stop printing money." He continues, "I remember in the seventies when we got off the gold standard and immediately had oil embargos. We said the Arabs caused our inflation. They contributed to the chaos, but they didn't cause the inflation. Oil never went back to $5 a barrel once it broke out because the value of the dollar went down. So if anybody is concerned about high prices they need to understand monetary policy."