Patriot,

Amidst the cacophony in Washington this past week, with their
assault on the Second Amendment and the sham hearing about
January 6th, you might not have noticed the Biden administration
was also testing out a new message: Biden is going to tackle
inflation, or at least act like he is trying.

His proposal, in a nutshell: Government meddling in the supply
chain, raising taxes, and letting the Federal Reserve take care
of the rest.

In my latest column, I show how Joe Biden's "plan to fight
inflation" is doomed to backfire.

If you haven't already seen my column for this week, it's
reproduced below.

And of course, be sure you sign the petition to Audit the Fed and
encourage others to do the same.
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-Ron Paul

Respect the Fed? No, End the Fed

President Joe Biden has unveiled a three-part plan to fight
inflation - or at least make people think he is fighting
inflation. One part of the plan involves having government
agencies "fix" the supply chain problems that have led to
shortages of numerous products. Of course, any attempt by the
government to solve the supply chain problems (which were caused
by prior government interventions such as shutting down the
economy for over a year) will not just fail to solve the supply
shortages but will create new problems.

Deficit reduction is another part of Biden's anti-inflation plan.
However, Biden is not proposing cutting welfare or warfare
spending. Instead, his deficit reduction plan consists of "tax
reforms to increase revenue," which is DC-speak for tax
increases. History shows that tax increases unaccompanied by
spending cuts end up increasing the deficit.

The last and most important part of Biden's inflation plan is
recognizing that the Federal Reserve "has the primary
responsibility to control inflation." President Biden has pledged
to "respect the Fed's independence," unlike former President
Trump, who Biden accused of "demeaning the Fed" by subjecting the
central bank to mean Tweets.

It is hard to believe that someone who has been in DC as long as
Joe Biden really thinks Donald Trump was the first President to
try to influence the Fed's conduct of monetary policy. Since the
Fed's creation, Presidents have used public and private pressure
to "convince" the Fed to tailor monetary policy to advance their
policy and political goals. When it comes to "demeaning" the Fed,
Trump has nothing on Lyndon Johnson, who, frustrated over the
Fed's refusal to tailor monetary policy to finance the Great
Society and Vietnam war, threw the Fed chairman against a wall.

By "passing the buck" on inflation, Biden no doubt hopes to
deflect blame from himself and his party before the midterm
elections. Unlike Biden's previous inflation scapegoats - greedy
corporations and Vladimir Putin - the Fed actually is responsible
for creating and controlling inflation.

Price increases in specific sectors of the economy may be caused
by a variety of factors, but economy-wide price increases are
always the result of the Federal Reserve's easy money policies.
Inflation is actually the act of money-creation by the central
bank. Widespread price increases are a symptom, not a cause, of
inflation.

Federal Reserve Chairman Jerome Powell remains committed to more
rate increases this year. However, even if the Fed follows
through on all its projected rate increases, rates will still be
at historic lows. While there are those on the Fed board who want
more and bigger rate increases, others worry that going too far
too fast in increasing rates will cause a recession. Already many
economic experts are saying America should be prepared for
increase in unemployment caused by the Fed's efforts to vanquish
inflation. This "tradeoff" between high prices and high
unemployment illustrates the insanity of our monetary policy.

Treasury Secretary and former Fed Chair Janet Yellen and Chairman
Powell have both admitted they were wrong to publicly dismiss
inflation as "transitory." The fact that the two most recent Fed
chairs made such a huge blunder (or purposely refused to admit
what was clear to many people for over a year), shows the folly
of relying on a secretive central bank to manage monetary policy.
Instead of "respecting the Fed's independence," President Biden
should work with Congress to audit, then end the Fed.

Sign and Share the Petition to Audit the Fed!
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And after you've signed, please support our common cause with a
contribution.

Click here to chip in - whether you can give $25, $50, or $100
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