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Randam Ron Paulism

Ron Paul: …you have to develop the transition, and eventually the next step would be to prohibit the Fed from monetizing debt. This is the real evil. The politicians spend for war, welfare, and they don’t have to do it responsibly.
Question: When you say monetize the debt, you mean they would only be able to spend the cash that they had on hand. They couldn’t write any cheques for which they don’t have in their account any money?
Ron Paul: That’s right. And that is the key to it. Because when the Fed comes along, and there’s starvation for capital and liquidity, and politicians are spending too much, the Fed can create 20, 30, 50 billion dollars in a day, just like they did trying to bail out this housing bubble crash. So they create money out of thin air endlessly, eventually that has to stop because that drives the value of the dollar down.”

  —Ron Paul
 Fox Business Network, October 16, 2007

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