To Make America Great Again, Separate Money and State

  In an article dated January 27, 2025, Ron Paul discusses President Trump's executive orders aimed at reducing costs for American families. Trump issued an executive order instructing federal agencies to lessen regulations that raise costs or limit supplies in sectors like healthcare and housing. While repealing regulations can help specific industries, Paul argues that broad price increases across the economy stem from inflation, which is fueled by the Federal Reserve increasing the money supply.

Paul explains that lowering interest rates does provide short-term benefits, but it ultimately leads to a decline in Americans' living standards as the dollar loses value. The wealthy tend to benefit first when the money supply increases, receiving new funds before inflation drives prices higher. Interest rates, as the cost of money, are manipulated by the central bank, which disrupts market signals and leads to resource misallocation. This can create economic bubbles that, when they burst, result in recessions, with the middle and lower classes suffering the most.

He argues that the best approach when a recession occurs is to let it unfold naturally to correct the distortions caused by the Federal Reserve’s easy money policies. However, Congress and the Fed often pursue policies that set the stage for future bubbles through stimulus spending and low rates. Paul also notes that President Trump believes he has a better understanding of interest rates than Federal Reserve Chairman Jerome Powell, but argues no individual can accurately determine the correct rate without a free market.

Paul encourages Trump to continue criticizing the Federal Reserve and to support legislative measures that promote a free market in money, including alternatives like precious metals and cryptocurrencies, as essential to achieving his goals for America.

https://ronpaulinstitute.org/to-make-america-great-again-separate-money-and-state/