Jobs Data Are a ‘Blip’ in System I’d Change: Ron Paul
Rep. Ron Paul tells CNBC the continued slow improvement in U.S. unemployment"is a temporary reprieve" in an economic system that would be changed if he is elected president.
"I see these as blips," the Texas Republican said of data released Friday showing 227,000 jobswere added in February and the unemployment rate remained at 8.3 percent. "You know, Wall Street got excited, and they're excited right now because the stock market's back up to 13,000. Well, in April 2007 it was 13,000."
So Wall Street is doing just fine in trading, but "what about the person who wants to save and take care of their future? There’s no incentive there," Paul said Friday.
The longtime congressman said he has asked U.S. Federal Reserve Chairman Ben Bernanke and his predecessor, Alan Greenspan, this question constantly: "Why make the elderly suffer? They say that’s the price they have to pay. We have to look at the big picture of seeing how we stimulate the financial markets," Paul said.
"The only thing they know is inflating the economy and it's further distortion," he said of the Fed. "I wish this [jobs report] was economic growth, but I just don’t believe it."
Despite not winning a single primary and being fourth behind Mitt Romney, Rick Santorum, and Newt Gingrich in the race to unseat President Barack Obama, Paul said his libertarian message appeals to those who "say freedom is the issue, not big government." But his philosophy would also "stop all the bailouts" and let the market dictate which companies succeed and which fail.
He would also let the market set interest rates instead of the Fed, which he has long wanted to abolish. He thinks there'll "be plenty" of quantitative easing from the Fed down the road in the meantime.
"When you keep interest rates at zero percent, isn't that a bit of quantitative easing? It’s the policy that has not changed and not likely to change," he said. "The whole concept is wrong. There’s a lot of credit out there, but it’s being allocated by Congress. It completely distorts the market when you should be getting capital from savings and allocation of credit from the private sector."
He claimed there is a "bubble" in long-dated Treasurybonds because "the price is way too high" for something of so little value, and likened Treasurys to Greece's bonds.
"You have to get rid of the debtif you want economic growth again," he said.