In a strongly worded blog post titled ‘Trump Is Right, the Fed Is Crazy,’ former Presidential candidate Ron Paul has indicated that removing taxes on cryptocurrency could help avoid, or at least ameliorate, the next recession. He also proposes a bill to audit the Federal Reserve, something he has been pushing for in the past decade.
Ron Paul on Fed-induced recessions
Ron Paul is a strong libertarian and precious metals proponent who has recently praised the attributes of cryptocurrencies. Paul has been pushing for an audit of the federal reserve and a return to the gold standard since the 1990s. This is still a core part of his political platform, with a reduction of government and a reintroduction to sound money. The value placed on cryptocurrency as opposed to precious metals seems to be generational, with older libertarians having a preference for precious metals and younger libertarians having a preference for cryptocurrency. An aspiration for individual autonomy and sound finance is the thread that connects the two. In the post, Ron Paul was critical of many aspects of the current fiat financial system –
“In contrast to market money, government-created fiat currency is anything but stable. Central banks constantly increase and decrease the money supply in an attempt to control the economy by controlling the interest rates. This causes individuals to misread market conditions, leading to a misallocation of resources. This can create an illusion of prosperity. But eventually reality catches up to the Federal Reserve-created fantasies. When that happens, there is a recession or worse, leading the Fed to start the whole boom-and-bust cycle over again.”
Libertarian philosophy increasing in popularity
Ron Paul and other politicians have been increasingly vocal in their opposition to Federal Reserve policies. Paul’s philosophy resonates strongly within the cryptocurrency community, and hopefully, the goal of ending the Federal Reserve can bring together proponents of precious metals and proponents of cryptocurrency. Both sides often engage in online debates of ‘intrinsic value,’ indicating that precious metals are useless ornaments or that bitcoin is worth no more than Tulip bulbs, a reference to a Dutch market phenomenon where the paper price of tulips skyrocketed. They are both simply asset classes which can serve to end an obviously corrupt fiat financial infrastructure, and both should be used where possible to achieve this shared goal. Paul concludes his post by stating that –
“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. The only way to avoid crisis is to force Congress to end our monetary madness. The first steps are passing the Audit the Fed bill, allowing people to use alternative currencies, and exempting all transactions in precious metals and cryptocurrencies from capital gains taxes and other taxes.”
Digital Nomad with an interest in Zen and Blockchain technology.
Law graduate with 3 years experience as a consultant in the capital markets industry and 4 years experience freelancing on UpWork as a Creative Writer.