Lux Lucet

Here’s Ron Paul’s Tuesday Dec. 15 appearance on CNBC. He discusses the current financial crisis and the role the Federal Reserve has played in bringing it about. One of the key problems with the Fed is that it, rather than the market, is entrusted with setting interest rates. Paul comments at about the 3:30 mark that in a sound economy, capital for economic growth should come through savings, but the Fed’s artificially low interest rates, which are meant as a stimulus to the economy, actually hinder it because low interest rates discourage savings and healthy capital formation.
 

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