Ron Paul Calls Federal Reserve ‘Crazy’, Says Cryptocurrencies And Gold Shouldn’t Be Taxed
A former Bitcoin skeptic and ex-congressman, Ron Paul calls for tax exemption of cryptocurrencies and precious metals, such as gold, in an open letter on his personal blog about the Federal Reserve's manipulative tactics.
A former Bitcoin skeptic and ex-congressman, Ron Paul calls for tax exemption of cryptocurrencies and precious metals, such as gold, in an open letter on his personal blog about the Federal Reserve’s manipulative tactics.
Although his article mainly focuses on the Fed’s manipulation of interest rates and the money supply, Ron Paul believes the next recession is imminent and that it may bring about the end of fiat currency.
He concludes by saying that people will likely turn to precious metals and cryptocurrencies, which should be tax exempt.
However, ex-Congressman from Texas wasn’t always so affirmative about cryptocurrencies.
As we were approaching the end of 2017, while the market was at the peak of its expansion, Paul stated that, while it was true that Bitcoin (BTC) is very exciting, crypto investors don’t have a long-term perspective.
Comparing the booming digital asset to gold, he expressed his doubt in the 10-years potential of Bitcoin, while detecting that, when gold is concerned, we have a decent enough idea of its perspective.
Was Twitter poll a turning point?
On December 5th, 2017, Ron Paul posted a poll on Twitter, asking his 644,669 followers in which form would they keep $10,000 for ten years.
As options, he gave Federal Reserve Notes, Gold, Bitcoin, and 10 Year US Treasury Bonds and the results were as follows:
To his obvious amazement, more than half of those who answered opted for Bitcoin, while only 10% combined opted for Federal Reserve Notes and Treasury Bonds, showing the growing distrust towards government issued assets.
Maybe that poll caused Paul to reanalyze his point of view.
Paul is a believer
It is connected to his mentioned Twitter poll how Paul emphasized that since the Federal Reserve’s creation in 1913, the US dollar has seriously devaluated, which severely punishes savers, while rewarding those who seek instant gratification, piling up massive debts in the process.
Retired Congressman declares that Federal Reserve constantly creates the illusion of prosperity and economic boom, which cyclically end up in recessions, which he refers to as the artificially created boom-and-bust cycle.
Therefore, Paul urges the US government to allow people to use alternative currencies. According to him, exempting all transactions in precious metals and cryptocurrencies from capital gains and other taxes would help get citizens through another inevitable Fed-created recession.
By saying that, not only did Mr. Paul acknowledge the possibility that cryptocurrencies and a gold-backed currency can co-exist in a free market, but also that they can be considered as a way out for all those individuals affected by the Federal Reserve’s negative financial policy.
The anti-Fed proclamation
Being a libertarian, Paul focused his statement on the dangerous impact that Federal Reserve has on the society as a whole.
However, mentioning cryptocurrencies in the same context with gold-backed currency he promotes, means that he considers them to hold value.
In accordance with that, Paul proposes these measures to be taken:
- Legalization of competing currencies
- The removal of capital gains and sales taxes on the money
- Zero tolerance for fraud
- The repeal of fall legal tender laws
- An audit of and possible elimination of the Federal Reserve
- Exposing the fraud of fractional reserve banking
- Audit the CIA, Pentagon, and foreign expenditures
- End bailouts of both private and government entities
- Consider crypto, precious metal and real estate ownership
- Consider expatriation for some
Ron Paul’s name holds much credit among the US political elite, but it is still too early to say if the US government will, like Paul, switch its stance towards cryptocurrencies or continue its non-flexible, traditional approach.