The Hill News

With Newt Gingrich, Rick Perry and almost the entire Republican Party now imitating Ron Paul on the matter of Federal Reserve policy, let me suggest where I think Dr. Paul is brilliantly right, where I think he is disastrously wrong, and why I believe there is now a substantial danger of a recession that could be more severe than 2007 and 2008.

First, America and Europe are now repeating the policy mistakes of 1937 and imposing severe austerity at a time of economic slowdown that could drive Europe and the U.S. into a deep recession. I agree with Dr. Paul that the Fed should disclose far more; that there should be a significant audit of how the Fed has spent money; and that Fed policy has been radically tilted toward banks at the expense of individuals and small business. I also fear that Dr. Paul's idea of ending the Fed would guarantee a global recession and potentially a great depression.

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