Posted on August 11, 2011

Ron Paul: We Deal With The Fed Because It "Creates The Business Cycle"

"I made a suggestion, which is a serious suggestion, and there's been quite a few who have supported me on this. We owe the Fed 1.6 trillion in Treasury bills. Where'd they get the money to buy it? They created it out of thin air. So, we pay them interest. That' on our books. So, we literally, with legislation could wipe 1.6 trillion off. That is not a solution to the monetary problem or spending problems, but if we give you a year to work this out we wouldn't have any of that debate going on.Those were scare tactics to scare people into doing things that is one thing we could do. We have to deal with the Fed, the Fed creates the business cycle. If you don't understand the business cycle you don't know why we have recessions. The sooner we learn that, the better," GOP 2012 candidate Rep. Ron Paul (TX) said at the debate on Thursday.