Patriot,

The media would have you believe the economy is rosy, but the
fuse on the fiscal time bomb is burning.

As I note in my latest column, which you can read below, the
national debt is increasing by a trillion dollars every few
months.

And while the Fed may try to keep the economy propped up just
long enough to get through the election, sooner or later, time
will run out.

Of course, the fact that the Fed might manipulate the economy to
manipulate the election just proves why the Fed is so dangerous .
. . and why the American people have a right to transparency.

That's why I'm thrilled to see my son, Senator Rand Paul, has
re-introduced Audit the Fed in the Senate. We need to push for
more cosponsors right now.

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Read my column below, and if you support our efforts to Audit the
Fed, please support Campaign for Liberty with a contribution.
[link removed]

For Liberty,

Ron Paul

Soft Landing or Hard Crash?

A clip from the 1990 movie Home Alone where the lead character
purchases groceries, household goods, and toys recently went
viral - because he paid a total of $19.83 whereas today the same
purchase would cost over three times as much.

Ironically, while this evidence of the Federal Reserve's failure
to maintain the dollar's value was going viral, stocks rose
because investors believed the Fed had successfully engineered a
"soft landing" by bringing down price inflation without causing a
recession and would soon begin reducing interest rates.

Then, stocks fell at the beginning of the year when the release
of the notes of the Federal Reserve Board's last meeting
suggested the Fed would not hurry rate cuts. The likelihood of a
delay in cutting rates was further increased by a "positive"
December Jobs report.

The jobs report did show unemployment remaining low and wages
slightly increasing, but the news was not all positive. One of
the report's most troubling items is that a top source of
increased wages is government. An increase in the salaries of
government employees also increases government debt, which will
have to be paid for by taxes. Since tax increases are unpopular,
the government relies on the Federal Reserve to do the dirty work
by purchasing federal debt instruments and thus creating more
inflation. This inflation tax is the worst of all taxes because
it is regressive and hidden.

If the Fed allowed interest rates to increase to anywhere near
what they would likely be in a free market, interest rate
payments on the federal debt would rise to a level causing a
financial crisis.

Even though the federal government will soon spend more on
interest on the federal debt than on the Pentagon and the
military-industrial complex, few in DC are serious about cutting
spending. Federal debt increased by one trillion dollars from
mid-September to the beginning of the new year. It is expected to
increase by around another trillion dollars by the end of March!

To put this in perspective, consider that the federal debt did
not reach a trillion dollars until 1981 - almost two hundred
years after the Constitution was ratified.

Continuing increases in federal debt and Federal Reserve created
inflation will lead to economic crisis caused by a rejection of
the dollar's world reserve currency status. There is already
resentment over the U.S. government's use of the dollar's reserve
status to support U.S. sanctions This is why Russia and Iran
recently signed a deal to trade in their own currencies rather
than in dollars and Russia is no longer accepting dollars for its
oil.

President Biden has kept his promise to refrain from criticizing
the Fed's conduct of monetary policy. In contrast, his
predecessor regularly took to Twitter to lambaste the central
bank. This means the Fed will likely try to help President Biden
by trying to keep interest rates low enough to not increase
unemployment yet high enough to not increase price inflation.

While Donald Trump is more likely than Joe Biden to challenge the
deep state and neoconservative foreign policy, the truth is
neither Biden nor Trump will seek to reduce spending. Unless a
critical mass of Americans demand an end to the welfare-warfare
state and the fiat money system, the soft landing sought by the
Fed and the politicians will turn into a hard crash.
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The mission of Campaign for Liberty is to promote and defend the
great American principles of individual liberty, constitutional
government, sound money, free markets, and a constitutional
foreign policy, by means of education, issue advocacy, and
grassroots mobilization.

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and not authorized by any candidate or candidate's committee.

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