The Federal Reserve has taken another step to end the dollar's reign as a global reserve currency, Rep. Ron Paul (R-Texas) said Wednesday. 

Paul, a 2012 presidential candidate and frequent Fed critic, criticized the central bank's Tuesday announcement that it would keep a key interest rate at or near zero percent for another two years. 

"I think what we're dealing with is the end of the dollar reserve standard, and that's a world-wide phenomenon," Paul said on CNBC.

The Fed on Tuesday did not announce a third round of quantitative easing as some had hoped it would, which could have led to more Fed purchases of Treasury debt and a flood of new money, something Paul has criticized in the past. Still, Paul implied that the Fed's decision to keep interest rates low through mid-2013 is a supplemental strategy that will push the dollar down, and said the recent surge in gold prices is a sign of that.

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"Actually, gold prices don't go up," he said. "It's just that the dollar goes down, and people are anticipating the dollar's going to continue to lose its value, so we can anticipate there's going to be a lot of price inflation down the road.

"There's not much left other than commodities, you know, and real value," he added.

Paul, who is at or near the top in some early 2012 presidential polls, was also skeptical about investors' treatment of Treasury bills as a safe haven in a time of economic stress. He said there is a huge market bubble in government bonds, as the flight to Treasury bills has driven yields down to historic lows.

"The bubble is in the price of bonds," he said. "How could anybody have this much trust in the bonds? You buy a 30-year bond and earn the interest rates you're making? That's where the big bubble is.

"I cannot believe people would have a high rating for any of this paper money and paper bonds, long term, when it earns no interest," Paul added. "It's so distorted."

He said the sinking value of the dollar and other currencies can already be seen around the world in the form of violence and riots over rising food prices.

"What I worry about the most is, the consequence of currency destruction is violence, and boy, every day there's more and more violence, whether it's in London, demonstrations in Israel — all around the world, revolutions going on," he said. "And this is all related to, sometimes, prices of food going up."