Yeah, but the guy I respnded to said that, as president, Mr. Paul would do the moral thing and raise rates. Pretty ridiculous argument, if what you say is true.
Are you speaking of post #70?
I agree with him that our leaders have a moral responsibility to be good stewards of our finances, which would include a stable dollar.
The Federal Reserve has been covering governmental overspending by creating more money, which makes more money available to at low rates. This makes borrowers happy, but it also discourages saving, causes inflation, and lowers confidence in the dollar. There are so many dollars in the hands of foreigners (about $5 trillion) that, if they lost confidence, the dollar would be worth squat.
RP could not actually raise interest rates, but with more conservative management of the dollar (not increasing the money supply by double digits every year), rates would no doubt increase. This is preferable to an actual crash of the dollar, IMO.