The decision by Federal Reserve Chairman Ben Bernanke to continue current economic stimulus policies shows that the nation is "addicted" to spending, former Texas Republican Rep. Ron Paul said Thursday.
"It's addiction. The people are addicted to spending. Politicians are addicted. The markets are addicted. And there's no chance they will wean us. This is what Bernanke was saying," Paul said on MSNBC's "Morning Joe."
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The former presidential candidate said the continuation of the Fed's bond-buying policy that helps keep interest rates low is an indication that the U.S. economy remains stagnant.
On Wednesday, Federal Reserve policy makers voted to continue the bond-buying stimulus program
, surprising economists and sending the stock market upward.
"I think it's a major admission by Bernanke that things haven't improved. He's saying, 'We're in bad shape,'" Paul said.
"I think it was a very, very bad, you know, announcement yesterday, that the economy is a lot worse off. And, I think, in time, it will prove to be the case," he said.
Paul insisted that the policy will not help the majority of Americans feeling the pinch of higher prices and decreased spending capability.
"It doesn't help those 99 percent, or, at least, large middle class and the poor. Won't help them one bit. Still going to have trouble getting jobs. So, there's a lot of disconnect here," he said.
"This idea that the Fed can create money out of thin air to satisfy special interests, and the politicians who like to spend money, it always leads to trouble. Except on the surface, a lot of people feel good about it," Paul added.
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