A Question about Ron Paul's Economics

[JayTee]

From Russell Roberts, economics professor at George Mason University, blogging on the NY Times website:

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Ron Paul thinks we’re in a recession at a time when unemployment is under 5 percent and blames it on monetary policy. This resonates with people who are scared and confused. I’m neither, so I’m not sure what he’s talking about.

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Someone help me on understanding the economics at work here. My first thought is that a recession with low unemployment is possible if the government has a large budget deficit. I have no clue if this is true or if it's currently the case.