Ron Paul Liberty Report - Weekly Update --- Economic Storm Clouds Gather, but Ending the Fed Provides Hope
Aired: 2018-04-02
Duration: 03:59


=== Fed's Misleading Claims (03:56) ===

[00:00:03]  Hello everybody.
[00:00:04]  Thank you for tuning in to the weekly report.
[00:00:08]  Economic storm clouds gather, but ending the Fed provides hope.
[00:00:13]  The Federal Reserve recently increased interest rates to 1.75%.
[00:00:19]  This is the highest interest rates have been since 2008, but it still leaves rate at historic lows.
[00:00:25]  While the Fed says economic growth justifies future rate increases, an honest examination of the economy suggests that future rate increases are unlikely.
[00:00:36]  The Fed's claim that the economy is strong is based on misleading government statistics.
[00:00:42]  For example, the official unemployment rate understates true unemployment by not counting those who have been looking for work for a long time.
[00:00:53]  According to John Williams of Shadow Government Statistics, the real unemployment rate is above 20%.
[00:01:01]  Government figures also understate the rate of inflation by pretending that you are not negatively impacted by inflation if you can still buy hamburger when you cannot afford steak.
[00:01:14]  Shadow Stats estimates that the real rate of inflation is as much as four times higher than the official rate.
[00:01:21]  President Trump's tariffs will further weaken the economy, while export-driven industries, including manufacturers that rely on imported materials, will be particularly hard-hit.
[00:01:34]  The tariffs, combined with the inevitable retaliation from other countries, will impact all sectors of the economy.
[00:01:41]  A global trade war could also lead other countries to stop buying U.S. debt instruments, increasing pressures on the Fed to keep rates low.
[00:01:50]  Since Republicans have held control of the White House and Congress over the last year, federal spending has increased 12.9%.
[00:01:59]  Clearly, those in Congress serious about reducing government spending are few and far between.
[00:02:06]  The sad fact is that both major parties are happy to increase welfare and warfare spending, although many Republicans pretend to oppose deficits when a Democrat sits in the White House.
[00:02:17]  This puts tremendous pressure on the Fed to keep rates low so as not to increase the federal government's already high interest payments.
[00:02:28]  This cannot last forever.
[00:02:30]  Eventually, the combination of a spendthrift Congress and a print-happy central bank will cause a major economic crisis.
[00:02:40]  This crisis will herald the end of the welfare warfare state and the fiat monetary system that sustains it.
[00:02:47]  The only question is whether the existing system will be replaced by a free market and limited constitutional government, or we will complete our descent into totalitarianism.
[00:02:59]  Fortunately, more Americans are becoming aware of the freedom philosophy and demanding that government roll back the welfare warfare state and rein in the Fed.
[00:03:09]  Many are demanding protection of their right to opt out, not just from government programs like Obamacare, but also from the Federal Reserve system.
[00:03:19]  For example, Wyoming recently joined Arizona in passing a law recognizing gold and silver as legal tender.
[00:03:26]  Citizens of these states are now able to protect themselves from the coming dollar crisis by using what has historically been considered real money.
[00:03:38]  At the federal level, the movement to audit the Fed remains strong.
[00:03:41]  As the failure of Keynesianism becomes more apparent, the movement to audit and end the Fed will grow in size and strength.
[00:03:49]  Hopefully, this movement will ensure the end of the welfare warfare state and the fiat currency system, as well as lead to a new era of liberty.