Ron Paul QE3 Predictions Are Already Proving to be Correct

It hasn’t even been a month yet since the Fed made their QE3 announcement, but Paul’s Austrian-based analysis would suggest that it will only continue to make things worse. By further devaluing the dollar, buying up near-worthless debt, and keeping interest rates near zero, the Fed is sending terrible signals to the economy while simultaneously not allowing the debt and malinvestment to be liquidated. Without this necessary correction, true economic production and growth can not be achieved. Paul’s recommendation of a “strong dollar and market interest rates” is once again being unheeded.

via megalextoria.com

What's the definition of insanity again?

Ron Paul Says QE3 Will Lead to a Worse Economic Crash Than What We Saw in 2008

“No one is surprised by the Fed’s action today to inject even more money into the economy through additional asset purchases. The Fed’s only solution for every problem is to print more money and provide more liquidity. Mr. Bernanke and Fed governors appear not to understand that our current economic malaise resulted directly because of the excessive credit the Fed already pumped into the system.

“For all of its vaunted policy tools, the Fed now finds itself repeating the same basic action over and over in an attempt to prime the economy with more debt and credit. But this latest decision to provide more quantitative easing will only prolong our economic stagnation, corrupt market signals, and encourage even more misallocation and malinvestment of resources. Rather than stimulating a real recovery by focusing on a strong dollar and market interest rates, the Fed’s announcement today shows a disastrous detachment from reality on the part of our central bank. Any further quantitative easing from the Fed, in whatever form, will only make our next economic crash that much more serious.”

via megalextoria.com