Ron Paul: "What Has QE Wrought?"

All paper or fiat money self-destructs and has limited lifespans. Gold currencies last until governments debase them into a fiat currency. The fiat dollar today, for many nefarious reasons, is constantly being destroyed by counterfeiters posing as politicians and central bankers. The day is fast approaching when the fiat dollar standard will need a major overhaul. The age of “Quantitative Easing” is ending.


The trillions of dollars created by the QE program have not restored soundness to the economy. QE did not address the problems caused by a central bank manipulating interest rates, determining the money supply, continuing to monetize government debt, pursuing central planning, and depending on a very unstable fiat currency. Only true monetary reform can address these problems.

The economic and political clout that a central bank has in managing a fiat currency system is enormous. Without the government’s ability to create money out of thin air, the cost of financing needless wars and the welfare state would be prohibitive. This arrangement guarantees excessive government and a systematic abuse of liberty. The people lose; the special interests always win.

We’re at the point where another QE inflationary binge will not tide us over in the next economic downturn. We’re fast approaching the time when true monetary reform will be required to deal with the “sin” of living beyond our means. If that is not done, expect a long period of economic chaos, inner city violence, and political warfare.

Sometimes I’m asked why do I have to be so pessimistic. Actually, many more see me as being optimistic. Optimism comes with a willingness to acknowledge the truth and deal with it in a positive manner with policies that make sense. Accepting bad ideas that purport to provide unlimited free benefits to everyone, is a deception that ends in disappointment. Instead of helping the poor, welfare serves the interest of the wealthy and the bureaucrats. Refusing to change policy will only extend the bad consequences that come from the Federal Reserve’s atrocious mismanagement of monetary policy.

In medicine a correct diagnosis of a serious illness can be very depressing, but knowing that treatment is available is uplifting. Remaining in denial of a problem’s severity is a dangerous option. Knowledge and truth lead to optimism. In politics and economics, the only decision to be made is to decide whether or not the goal of peace and prosperity can be best achieved by more intrusive government or by promoting personal liberty.

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