America’s “Fiscal Responsibility Act” will hasten a collapse of the US dollar and force Americans to take the brunt of its fallout, according to former Congressman Ron Paul.
While not an official default, the former Texas Representative believes it may as well be one, allowing the government to further expand the money supply, thus debasing the dollar and hurting the savings and wages of Americans.
“Of course, this default will be felt by the people in the form of an inflation tax. This inflation tax may be the worst of all taxes, because it is both hidden and regressive. Politicians love to point the finger at greedy corporations, labor unions, and even consumers for increasing prices instead of taking responsibility for the legislation they pass that incentivizes the Federal Reserve to create more inflation.”
Paul argues that the agreement, which he says has nothing to do with fiscal responsibility, will also have negative effects beyond home soil. According to Paul, the two-year removal of the debt ceiling will lead the US to lose its world reserve currency privileges much sooner than anyone has anticipated.
“The Fiscal Responsibility Act will result in increased government spending, debt, and deficits. It will also further erode the value of the United States Dollar, thus making it more likely that the US dollar will lose its world reserve currency status sooner rather than later.
The Fiscal Responsibility Act is to fiscal responsibility as the Affordable Care Act is to affordable health care and as the Patriot Act is to true Patriotism. Perhaps a future Congress will introduce legislation that actually begins to cut back on the size and scope of government called the Fiscal Irresponsibility Act!”
At time of writing, the US government’s debt stands at $31.8 trillion.
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