According to retired pro-Bitcoin congressman (who was formally a Bitcoin skeptic), Ron Paul, the Federal Reserve should be abolished following its move to increase the baseline interest rate to a quarter per percentage point to 2.25% or 2.5 for the second time since November.
This makes it the fourth time that the Federal Reserve has raised interest rates in 2018. This move by the Federal Reserve has sparked fears of a recession in the United States (which many fear could trigger a potential global recession) next year. Paul: Federal Reserve Should Allow Free Market Dictate The Interest Rates According to Paul the Federal Reserve should allow the market to freely dictate interest rates rather than manipulating them artificially.
According to Paul the artificial manipulation of the interest rates distorts the economy. The Federal Reserve have no idea regarding what the actual rates should be he said in a tweet. Paul’s tweets gained many replies and retweets.
The Former Legislator Has Previously Called For Dissolving Of The Federal Reserve
We can recall that this isn’t the first time that the former congressman (the father of US Senator Rand Paul) has declared that the Federal Reserve should be abolished. According to CCN in October, Paul trashed the institution for manipulating interest rates claiming that such actions could trigger a recession in the United States which in turn can lead to the death of fiat currency. In his words at the time:
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“It is highly likely that the next recession created by the Federal Reserve will come sooner. This could become a huge catastrophe which can end fiat currency for good.”
According to him the best way to avoid a recession following the Fed’s actions is to allow people to use digital assets like Bitcoin (BTC) and to ensure crypto is tax free. He said central banks continue to increase and decrease the supply of funds to control the state of the economy through manipulation of interest rates. He believes that the Federal Reserve’s cyclical manipulation creates an artificial state of booms and busts for the economy. This can inevitably create the illusion of prosperity. However, reality eventually catches up with the Fed created fantasies. When this happens, there will be a recession or even worse. Just like many people in the crypto community, Paul is a libertarian. He constantly opposes intervention by the Federal government on the free market.
The digital token community prefers the ecosystem’s unregulated and decentralized market. The former legislator said that an economy that isn’t manipulated is better. “Not only should the Federal Reserve be audited, it should be gotten rid of,” he declared.
Paul Was A Crypto Skeptic In The Past But Has Now Embraced Bitcoin (BTC)
Until recently, Paul was an advocate of the gold standard which wasn’t for Bitcoin (BTC). Now it is the opposite. In his words:“Bitcoin is exciting but investors don’t entertain the idea of a long-term perspective. What is it going to look like in the next 10 years? Nobody knows. Although we have a good idea of how gold will be.”
Paul has changed his outlook on digital assets. He now believes that Bitcoin (BTC) and gold-backed currencies can co-exist.