Ron Paul, a former U.S Congressman, and Federal Reserve critic claims that cryptocurrencies might be the solution to preventing the imminent recession.
Paul’s claim is a refreshing opinion to the cryptocurrency market considering that he was once skeptic about Bitcoin but has since then become a believer. The former congressman suggested that the U.S government should slash all cryptocurrency-related taxes, a move which he claims will prevent the recession. Paul wrote the suggestion in a blog that has the interesting title, “Trump Is Right, the Fed Is Crazy.”
“It is likely that the next Fed-created recession will come sooner rather than later. This could be the major catastrophe that leads to the end of fiat currency,” Paul wrote on the blog.
The Federal Reserve will cause a recession through interest rate manipulation
Paul used the blog to criticize the Federal Reserve for interest rates manipulation which he believes will cause the next inflation. The Federal Reserve attempts to control the economy through interest rates control which in turn controls money supply in the economy. He Paul claims that meddling with the interest rates creates an artificial economic boom that fuels inflation. However, those tactics have not been as efficient and the economy is on the blink of a recession.
The former U.S congressman believes that using cryptocurrencies might help prevent the impending economic crisis. He believes that the only effective anti-inflation tactic will be exempting taxes from transactions involving cryptocurrencies and precious metals.
Paul wants the Federal Reserve to be abolished
Paul also suggested that the Federal Reserve should be audited and even further suggested that it should be abolished. He supported his claim by saying that a strong society is characterized by a lack of economic manipulation and limited government involvement. Although Paul is a Trump critic, he currently agrees with POTUS’ decision to criticize the Federal Reserve.
The former U.S congressman pointed out in his blog that an “audit the Fed” bill should be passed. This would allow the use of alternative currencies such as cryptocurrencies and also pave way for tax exemptions. Paul also believes that valuable metals such as silver and gold are better reserve currencies than the U.S dollar.