Posted on 05/20/2021 1:39:35 PM PDT by RandFan
The federal government has broken the bank with an astounding $6+ trillion in (ostensibly) pandemic-related spending to date, and President Biden wants to spend trillions more. Unfortunately, many Republicans in Congress have been too inconsistent on this issue to protest this spending binge in any meaningful way.
But one of the few principled fiscal conservatives left in Washington, Senator Rand Paul, is warning Americans to “wake up” to the “profound repercussions” this big government blowout will have. In a Wednesday interview with Fox Business, Paul argued that mounting inflation levels are a serious cause for concern—not temporary, as proponents of big government insist. His warning comes after new data show inflation is at a 12-year high, with price levels increasing, at minimum, 4.2% over the last year.
“When the [Federal Reserve] says this [inflation] is transitory, I think that's an excuse for government spending and borrowing,” the senator said. “It's sort of from the same kind of lexicon of ‘deficits don't matter.’"
"But our spending levels aren’t sustainable. “We added four or five trillion dollars’ worth of debt last year,” Paul added. “We're probably going to do the same again this year.”
It’s more than just bad budgeting, the senator warned. “What you've caused is a massive misallocation of resources, a massive infusion of cash into the stock market.”
“There is [going to be] a time in which people wake up and say ‘the emperor has no clothes,’” Paul said. “And at that moment in time, you will discover that there's a lot of capital that's gone in the wrong direction, that demand is exceeding supply... because we've disrupted the normal marketplace.”
Rand’s point about misdirected capital is a reference to the Austrian Business Cycle Theory, which explains how the creation of new money (generally by central banks like the Fed) causes distortions in the economy that must eventually be ironed out by a corrective “crash.” (For more on this, check out this FEE article by economist Jonathan Newman.)
“I don't think it's as benign as people say it's going to be,” Senator Paul said. “I think [the spending blowout] is going to have profound repercussions—and that we're just getting started.”
They won’t
Is he spending? Or is he collecting and saying he’s spending?
Too late.
Printing money worked perfectly fine for Venezuela, Zimbabwe, and the Weimar Republic.
I keep thinking of 1979. In my head I hear the song “Get Down, Boogie Oogie Oogie.”
no one listens to Rand-too whacko.
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I guess it’s too much to ask for something other than DC Commentary when so much damage is already done.
Rand likes to wax on, but he doesn’t want to upset the boat.
The GOP used Obama policies to fundraise, but they eventually voted to support those policies.
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Those who received 6trillion are happy
The Mugabeing of our economy is already under way.
Can thousand dollar bills be far off, or million dollar bills?
Unfortunately, many Republicans in Congress have been too inconsistent on this issue to protest this spending binge in any meaningful way.
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The GOP embraces big spending, big government and big debts. They never do anything to shrink the size and power of government. The GOP is not in any way, shape or form a conservative party.
We need to do something about this....
What he said there is so true.
I believe the only alternative is to form a new party. The GOP is corrupt, unprincipled and simply incorrigible.
He should spell out what those ramifications are, such as the destruction of covid lock down times ten.
Liberals love spending theirv grandkids money
At one time in the not to distant past, the Federal Reserve actually sold bonds to raise cash. Now they simply put a bunch of digits on a computer and “create” money. I’ve asked before, it the fed can jut create money, why does it add to the debt since the money isn’t real?
Who’s saying this insane spending and other ruinous policies by this demented dumba@@ is benign? I have recognized it exactly for what it was from the get-go.
We are going to see this again.
“REFINANCE YOUR HOME AT 125% OF IT’S CURRENT VALUE, DO IT NOW, To take advantage of the new LOW Interest Rate of 20%!”
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