Bitcoin to the Rescue as Ron Paul

Says US Fed “Fake Economy Has Burst”

The United States Federal Reserve’s “fake economy has burst,” as stated by the U.S. former presidential candidate Ron Paul while money printing takes the Fed’s balance sheet to $6.6 trillion and Bitcoin slowly regains its positions.

In a series of tweets from April 24, Paul became the latest to bash the U.S. economic policy present and past.

Paul: replace central planning with sound money

According to the pro-Bitcoin retired politician, neither coronavirus nor a brief rise in stocks can conceal the repercussions of the Fed’s actions for the U.S. economy. For him, Keynesian ideas like market interventions and money printing are “un-American.”

“The Fed’s fake economy has burst. The stock market, even if it rises, cannot hide the damage that has been done. The virus, now known to be less deadly than the seasonal flu, cannot act as a legitimate excuse either,” he stated.

Another tweet notes:

“The un-American ideas of government micromanagement and Fed central planning of the economy have failed, and will continue to fail as long as they’re clung to. The time to rebuild with the American ideas of liberty and sound money has arrived.”

Paul’s statements come along the Fed’s balance sheet breaking record highs, purely due to money printing and associated economic bailout measures.

Federal Reserve balance sheet 14-year chart. Source: Holger Zschaepitz / Twitter

Last week Raoul Pal, CEO of Global Macro Investor, this week published a dedicated 120-page report covering the severity of the economic damage inflicted by governments in response to coronavirus.

“The Baby Boomers are totally f*cked,” a popular takeaway from the report, which praises Bitcoin, summarizes.

Brandt: stocks mirror 1930s Great Depression

In the meantime, the trader who predicted Bitcoin (BTC) crossing $20,000 in 2017 has compared the stock markets of 2020 and 1930 — just before the Great Depression hit with full force.

Analyzing two Dow Jones charts, Peter Brandt stated that stock’s current rise from last month’s crash just resembles their behavior after the 1929 Wall Street Crash.

“Sleep well tonight. We are all so lucky to be living in an age when Fed will bail us out,” he sarcastically added in comments.

Dow Jones charts from 2020 and 1929-30. Source: Peter Brandt / Twitter

The idea that money printing is ruinous in the long term has formed part of similar Fed criticism for almost a century.

“The world is full of so-called economists who in turn are full of schemes for getting something for nothing,” Henry Hazlitt stated in his well-known book, “Economics in One Lesson,” just a year after the Second World War.

“They tell us that the government can spend and spend without taxing at all; that it can continue to pile up debt without ever paying it off, because ‘we owe it to ourselves.’”