“When the [Federal Reserve] says this [inflation] is transitory, I think that’s an excuse for government spending and borrowing,” the senator said. “It’s sort of from the same kind of lexicon of ‘deficits don’t matter.’”
But our spending levels aren’t sustainable. “We added four or five trillion dollars’ worth of debt last year,” Paul added. “We’re probably going to do the same again this year.”
It’s more than just bad budgeting, the senator warned. “What you’ve caused is a massive misallocation of resources, a massive infusion of cash into the stock market.”
“There is [going to be] a time in which people wake up and say ‘the emperor has no clothes,’” Paul said. “And at that moment in time, you will discover that there’s a lot of capital that’s gone in the wrong direction, that demand is exceeding supply… because we’ve disrupted the normal marketplace.”