Ron Paul Slams Stimulus Package and Fed Cuts

Republican presidential hopeful Ron Paul has slammed a US economic stimulus package based on tax-refunds and called for fiscal prudence and less Federal Reserve money printing, which caused the current turmoil in the first place.

Talking to Fox News television Paul asked where the money for the tax refunds - the cornerstone of the Bush administration stimulus package - was coming from.

"Where is the money coming from? We don't have any money over here in Washington," Paul told Fox News' Your World with Neil Cavuto.

"We have consumed everything we have gotten. So, we either have to borrow it from China or we print the money, which is inflationary. So, I'm opposed to that."

Paul says Federal Reserve moves to cut rates would further hurt the US dollar. Paul, a congressmen representing Texas, is also on the House Financial Services Committee and the Joint Economic Committee. He is a strong advocate of sound monetary policy.

The sub-prime bubble he points out was caused by rates as low as one percent maintained by the Fed under Alan Greenspan which led to reckless lending and a property bubble. Now the Fed was giving its own 'stimulus' by cutting rates.

"This is a bit of a fiction, too, because the problem comes from artificially low interest rates," he pointed out.

"And we can't solve the problems of a weak dollar by printing more dollars."

"So, I think the dollar is still going to remain under attack, because you can't solve the problem of too much credit stimulus by more credit stimulus, because it will just lead to a weaker dollar. And I think they [Fed] are between a rock and a hard place."

Paul says the world is losing confidence in the US dollar as a reserve currency.

He is calling for reforms of the Federal Reserve and long-term changes to promote savings in the United States. Paul says taxes on interest discourages saving and the creation of 'real' capital.

"Then we resort to creating pseudo-capital at the Federal Reserve. And I think that's where our number one problem is," he said.

"And that is where the business cycle originates. And, as long as we have artificial booms, we're going to have these very real busts."

Gidgette said:
It is definately going to be bad news if we enable the stimulus package. We are already in more debt than ever WHY create more?? Why spend money we don't have.... if America stopped spending so much things can get better... thats not gonna happen

FearTheReaper said:
Ron Paul has about as much financial knowledge as a hamster.

ThisWeekInTime said:

But how is this bad logic? Enlighten me if you will. Pretend it's not Ron Paul or something, what about the words.

FearTheReaper said:

There are so many reasons our economy is in the tank, to just blame it one low interest rates and inflation if fucking retarded and simplistic. And that is why he is popular, people want it simple, It's not.

FearTheReaper said:
Ron Paul has about as much financial knowledge as a hamster.

FearTheReaper said:
Those are traditional ways to ward off recession.

DevilsReject said:
jesus. "Fox News" and "Ron Paul" in the same thread, might as well set fire to this one now. I am actually surprised Fox News even talked to him, they've been ignoring him in all other situations.

wildswan said:

He has as much financial knowledge as a hamster? Too much
credit.

Gidgette said:
We arent going to print money, we're going to borrow it from a country Im sure... or correct me if Im wrong. We are in debt because we owe many other countries a shit ton ( thats the word of the day) of money. The stimulus package is coming from more borrowed money right?

and if they do plan to print money, why the hell not? I mean if we didnt tell anyone it wouldnt lose value just be sure to split it equally. It would fit right in with all the other fucked up shit our country is based upon.

wildswan said:

He has as much financial knowledge as a hamster? Too much
credit.

DevilsReject said:
jesus. "Fox News" and "Ron Paul" in the same thread . . .

SockPuppet said:
I guess someone could have avoided spending fuckloads of money on invading Iraq for no sane reason... then maybe a tax cut would have been affordable? Just asking.