In a recent episode of his video broadcast Myth Busters, Ron Paul and Chris Rosinni talked about how government destroys markets by tampering with prices. After discussing the ways government intervention has destroyed the market for health care and education in America, and looking at the negative impacts of tariffs and price supports in agriculture, they dove into the most destructive price manipulation there is – central bank manipulation of interest rates.

Paul called the Fed the “king of price fixers” and said its policy of setting interest rates is ultimately responsible for most of the economic problems we face today.

St. Louis Federal Reserve Bank Chairman James Bullard recently said he was undecided on the right path for interest rates. Paul thinks this offers a glimmer of hope

This it tremendous news because the Federal Reserve is starting to recognize something it should have recognized 100 years ago: they have no idea what the interest rate should be and it’s only going to cause trouble if they do get involved.”

Paul went on to explain how Federal Reserve policy hurts the poor and middle class, spurs unemployment, and leads to recessions.

All these problems come from the fact that there’s this total myth that there is somebody somewhere that’s smart enough to know what the interest rate should be.”

Highlights from the interview:

“The king of all price-fixers; the institution that pretty much enables government to do the bad things we talk about today…the Federal Reserve. It messes with the money supply and interest rates.”

“St. Louis Fed chairman James Bullard said ‘he’s undecided on the right path for interest rates.’ This it tremendous news because the Federal Reserve is starting to recognize something it should have recognized 100 years ago: they have no idea what the interest rate should be and it’s only going to cause trouble if they do get involved.”