Seven days into Donald Trump’s tenure as the 47th U.S. president, his administration has swiftly moved to dismantle a slew of regulations established under his predecessor, Joe Biden. The abrupt reversal of policies has ignited debates about the ideological pivot now shaping federal governance.
Ron Paul’s Bold Message to Trump: Separate Money and State to ‘Make America Great Again’
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Ron Paul’s Video Message to Trump Insists That the U.S. Cut Ties With the Fed to Bring a ‘New Golden Age’
Amid this flurry of activity, former GOP Congressman Ron Paul delivered a pointed video missive to Trump, positing that the most effective method to fulfill the promise of “making America great again” lies in divorcing fiscal authority from political power. “Separate money and state,” Paul declared, framing the proposal as a philosophical imperative and a tactical blueprint for national renewal.
“Repealing regulations is an effective way to reduce costs and increase supply in the affected industries,” Paul said in his video. “However, the price increases caused by regulations are sector-specific. Economy-wide price increases are caused by the Federal Reserve,” he insisted.
Paul posited that pervasive price escalations stem from inflationary mechanisms—specifically when central banks diminish borrowing costs through monetary expansion. During a Thursday address broadcast to the World Economic Forum’s annual gathering in Davos, Switzerland, President Trump revealed plans to convene with Federal Reserve Chairman Jerome Powell, urging rate reductions to alleviate financial strain on households grappling with steep costs.

He cautioned that while infusing fresh currency into markets could momentarily amplify consumers’ ability to spend, such measures risk precipitating a gradual deterioration in collective prosperity. The devaluation of the U.S. dollar, he argued, transforms transient relief into a protracted burden, as artificially inflated liquidity corrodes purchasing capacity over time.
“When the central bank manipulates the interest rates, it distorts the signals sent to the market actors, causing misallocation of resources,” Paul detailed. “The result is a bubble that produces a short-term boost in employment and income. However, the bubble will eventually burst, causing a recession. Just as middle- and lower-income Americans suffer most from the Federal Reserve-caused price increases, they are the primary victims of the Federal Reserve-caused recession.”
The freedom advocate and former GOP Congressman added:
The best thing Congress and the Federal Reserve can do when a bubble bursts is let the recession run its course. Recessions are necessary to remove the distortions caused by the Federal Reserve’s easy money policies. Of course, Congress and the Federal Reserve refuse to take the sensible, though politically difficult path; instead, they set the stage for the next bubble via stimulus spending and low interest rates.
Paul: Audit the Fed and Let Americans Leverage Alternatives Monies Like Precious Metals and Cryptocurrencies
Paul further contended that President Trump’s assertion of superior grasp over interest rates compared to Federal Reserve Chairman Jerome Powell—whether Trump’s career in real estate development, a sector acutely tethered to rate fluctuations, renders him more authoritative than Powell—remains immaterial. The crux, he emphasized, lies not in credential comparisons but in recognizing that neither elected officials, administrative figures, nor central banking elites can divine the “correct” rate.
True rate equilibrium, Paul stressed, materializes solely when unencumbered market actors, operating within a laissez-faire framework, determine borrowing costs through voluntary exchange. Any contrived alternative, he warned, distorts economic signals and invites systemic fragility. Despite his misunderstanding of monetary policy, Paul acknowledged that President Trump deserves credit for publicly criticizing the Federal Reserve.
The former Congressman concluded his video by stating:
President Trump should follow through on his critiques of the Fed by working with Congress to pass the Audit the Fed bill and legislation allowing people to use alternatives like precious metals and cryptocurrencies. Restoring a free market in money is key to fulfilling President Trump’s inaugural pledge to bring about a new golden age.
To Make America Great Again, Separate Money and State pic.twitter.com/OzfI4BkiRt
— Ron Paul (@RonPaul) January 27, 2025














