By Ron Paul
In her testimony before Congress, Janet Yellen blamed weakness in the global economy for the economy’s continuing poor performance. She also tried to reassure Congress the Fed was capable of knowing exactly the right time to raise rates to head off inflation without further slowing down economic growth. Fortunately, a growing number of Americans have realized the Federal Reserve’s polices are actually responsible for our economic problems.
Unfortunately, this week’s hearing shows that most in Congress still do not understand the problem is not specific Fed policies, but the system of fiat currency administered by a secretive central bank. One party believes the only problem with the Fed is that it is not pumping enough money into the economy, while the other side believes the fiat monetary system can be made to work if the Fed adopts a rules-based system. But central planning of monetary policy is just as doomed to fail as all other forms of central planning- even if the central planners are forced to follow a monetary policy rule.
Congress must start taking serious steps to address our flawed monetary system. A necessary first step is giving the people a full picture of the Fed’s operations by passing my Audit the Fed bill.