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Ron Paul, former Presidential candidate has once again called for the abolishment of the Federal Reserve which recently increased interest rates from 2.25% to 2.5%.
Ron Paul who was previously a critic of Bitcoin is now endorsing Cryptocurrencies and recommending a mixed economy where the FED is not the sole issuer of the currency. Mr. Paul believes that the FED distorts the economy by manipulating the prices. He is a free market proponent and doesn’t think that a centralized entity like Federal Reserve can accurately determine the interest rates which is contrarian to most of the Keynesian economists.
The FED dropped interest rates to zero back in the 2008 financial crisis after which the interest rates have gone up slowly. This year alone the FED has increased the interest rates four times and is expected to further tighten the economy by drawing down $50 Billion each month from its balance sheet.
Ron Paul took on Twitter to bash the FED, holding a copy of his book “End the FED” in the picture Ron Paul Tweets:
The Fed has NO IDEA what rates should be.
The Fed manipulates prices, distorts the economy, and makes decisions by looking at the "data" of a distorted economy.
Central planning produces a world of economic delusions.
America needs to get back to reality.
End The Fed! pic.twitter.com/achfl4uIQ8
— Ron Paul (@RonPaul) December 19, 2018
Tax-Free Crypto
Ron Paul has turned from a Bitcoin skeptic to a supporting tax-free Cryptocurrencies. Mr. Paul is a proponent of commodity backed currencies where the free market gets to decide the price instead of the FED artificially controlling the monetary policy causing boom and bust cycles. As Bitcoin is close to being digital gold, Ron believes that Gold and Cryptocurrencies can co-exist.
According to Blockmanity’s previous report, Ron Paul had called for tax exemption on precious metals and Cryptocurrencies. He believes this will help navigate the next FED induced recession.
He said:
“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.”
The 83-year-old former congressman also ran a poll on Twitter recently asking his followers what they wanted as a gift that could not be touched for ten years. Out of the 95k followers who took part in the poll, 50% of the participants opted for Bitcoin
A wealthy person gifts you $10,000. You get to choose in which form you’ll accept the gift. But there’s a catch: You must keep the gift in the form that you choose for 10 years without touching it. In which form would you accept the gift?
— Ron Paul (@RonPaul) November 15, 2018
Blockmanity’s Take
We at Blockmanity believe in free markets and stand by Ron’s position on ending the FED. Even by exempting gold and Cryptocurrencies by capital gains taxes if the financial crisis cannot be stopped, it will at least provide the people a choice to opt out or hedge against the FED’s monetary policy.
In other news, two congressmen proposed a bill to exclude cryptocurrencies from the Security Act of 1933.