The New American – June 23, 2008

Exclusive! Congressman Ron Paul discusses the state of the economy in a special cover story on economic bubbles.

The Federal Reserve’s interest rate manipulation and loose monetary policy create housing and other bubbles that burst with disastrous effect. The Fed’s answer is to embark on a policy of reflation, fighting one bubble by creating another. The proper way to deal with an economic crisis is to lower taxes, loosen regulation, and keep the government’s hands off the economy.