Rand Paul: “we are now experiencing a worldwide financial crisis. It may yet prove to be the worst in all of history. There have…”

“we are now experiencing a worldwide financial crisis. It may yet prove to be the worst in all of history. There have been a lot of wringing of hands as to the cause, but the source of the problem is not a mystery. It is a currency induced crisis. Although tax, spending, regulatory policies and special interest cronyism compounds the problems, all nations of the world operate with a fiat monetary system. We have been operating with one for 27 years. It has allowed the financial bubble to develop. Easy credit and artificially low interest rates starts a chain reaction that, by its very nature, guarantees a future correction. Depending on the particulars of fiscal and monetary policy and political perceptions, the boom part of the cycle lasts for unpredictable lengths of time. The later bad consequences of inflating a currency are certain, no matter how beneficial the earlier ones seem. The dollar has played a major roll in the worldwide financial bubble since the dollar is the reserve currency of the world. It is readily accepted and used to further inflate most other world currencies. Noted free market economists Ludwig Von Mises astutely observed in 1940: No political party and no government has ever tried to make a conscious deflationary effort. The unpopularity of deflation is evidenced by the fact that inflationists constantly talk of the evils of deflation in order to give their demands for inflation and credit expansion the appearance of justification.”