Ron Paul: You Can’t Save Free Markets by Socialism

Alexis Glick: Texas Republican Congressman Ron Paul. Congressman, thank you so much for taking the time to join us. You had an opportunity to hear what the president had to say. Do you agree or disagree with the choices being made this morning?

Ron Paul: Well, I can’t agree with socialism, I mean this is just more government. The idea that we can create wealth out of a printing press just doesn’t make any sense to me. I think what we have here is a fleet of helicopters, and Ben Bernanke said that he could always reinject credit into the market. But we’re broke, we don’t have real wealth and this is all new credit and we’re gonna guarantee everything… everything! Bad loans, good loans, whatever, it can’t work.

What if this nothing more than pushing on a string. Sure, there’s a lot of credit, but what if borrowers don’t want to borrow, and what if lenders are still skiddish. This is what the case has been, they haven’t been wanting to even some of these big banks aren’t all that anxious to be socialized. So, it is a mess.

I just can’t believe for a minute that just creating credit out of thin air will solve the problem. This to me is a dollar crisis and what we’re doing here is guaranteeing the devaluation of the dollar.

Alexis Glick: I was just gonna say that because you know, Congressman, you and I have talked about this on many occasions what has been happening to the dollar, particularly over the past couple of years and the fact that you’re unhappy that consistently we appear to not truly be supporting a strong US dollar.

Let me ask you this: If in fact we are in the midst of a global recession and that the US is at the forefront of turning things around, and we do see the European Union cut rates aggressively, is there a chance that sort of de-facto the dollar becomes stronger because we’re at the forefront of this, as opposed to us doing something that would truly restore confidence in the US dollar?

Ron Paul: Well, they’re looking at the wrong thing. If you look at the dollar in relationship to other weak currencies they’re all fiat currencies, so Europe is socialized and they run that debt.

How can you say the dollar is strong because temporarily it goes up against the euro or whatever? What you have to look at is the purchasing power of the dollar. You have to look at the checkbook of every American consumer and whether they have any money left over. The value of the dollar goes down, the cost of living goes up, the standard of living goes down, taxes go up, the government keeps borrowing and keeps taxing.

You can’t save the dollar by printing more dollars. You can’t save this financial system because the problem is based on the fact that we have been inflating and distorting the economy for so many years.

Alexis Glick: So Congressman, how do we turn this around? It appears to me though that we had frankly no choice in the matter. We saw what the European Union was doing and if we didn’t do something similar, some would have suggested that all of our bandaid approaches that we put into place over the past six months would have had irreparable damage here in the United States. How do we change it?

Ron Paul: Well, you change it by allowing us to return to the marketplace. We shouldn’t have the government dictating everything and all the guarantees and the loans and the inflation. You have to allow the liquidation of debt, you have to allow the market to set the prices. And what we’re trying to do now is fix prices, keep prices of houses up, and financial instruments up artificially, you know, getting illiquid assets, that means they’re worthless and the taxpayer has to buy these. This won’t solve the problem.

In a way Japan did this. Remember how long they kept their assets on the books at false values, and we’re doing the same thing again. It just delays the process.

You can’t get out of it without some pain. The question is, are you gonna have a short painful period of a year, or are you gonna prolong the agony and turn us into a depression.

The NIKKEI was at peak in 1989 and is still probably 20% of what it [was then] and this is what we’re doing. We are guaranteeing that this process will last for a long, long time because we don’t have sound money, we don’t have sound economic principles.

You can’t save free markets by socialism. I don’t know where this idea ever came from. You save free markets by promoting free markets and sound money and balanced budgets.

The whole reason why nobody wants to address the real problem of this is we’re spending a trillion dollars a year overseas running an empire and it’s coming to an end. This country is bankrupt and we won’t admit it. Eventually though the dollar will go bust and we will bring our troops home and we will live within our means but we ought to do it sensibly rather than waiting for the collapse of the dollar and this is what we’re doing.

We’re on the verge of destroying our dollar and then, you think we have problems now, problems then will be a lot worse. It will look like the Weimar Republic or a third world nation, and a lot of people know that and they’re scared to death, but we don’t need to be making the problem worse by just propping up everything with more government programs and more inflation and more helicopters, it won’t work.


  • RonT

    “You can’t save free markets by Socialism”

    That my friend will be a quote for the books.


    I really cannot add to what Ron Paul has already said. But friends this may be off topic but reading all your comments … “why do we come to the conclusion that this has something to do with God?”

    In order for this country to change we must first think reasonably we must act intelligently we must look to our selves and our fellow Americans for strength, encouragement and “love”. And we must be responsible for our actions … yes?

    I support Ron Paul, Chuck Baldwin and many more like them. I believe in them just as I believe in God. God is as real to me Mr Paul or Mr Baldwin. Yet when I here men who know God and speak formally I don’t hear them preaching how God is coming to crush us, how this has to do with God. Because this has nothing to do with God … Many I know will disagree with me and say “RonT the prophecy is in the bible it foretells … God punishes the wicked and we are wicked … and of course Jesus let’s not forget about that!”

    I know I’m treading on shaky ground here please let me explain. What if the bible was written by men, what if there were 4 other Jesus in this would that the bible doesn’t speak of they had different names all were born by a virgin mother all had 12 apostles all cured the sick, raised the dead, walked on water etc, what if things were left out of the bible things like the “the Acts of Solomon” and many other books, what if all that you know about God, the bible, and Jesus is less than half of what you really think you know. Well friends all that I said is true.

    You see must not be confused about God and what God is, what Gods interests and intentions are. There are two ways to see God for most of us, the Old Testament way of portraying God and the New Testament way. One way we have the God of wrath and destruction other way we have God of love and understanding. Did you ever wonder why there is such a contrast? an inconsistency? Are we to conclude that God has a personality disorder? No, we can however conclude that the bible was written by men and many things were left out and even words and entire books were band from even being printed in the bible. Because this was done to the bible we have inconsistencies. The early Jews sort of added there own filler (There is an actual name the Jews use for this process and I am completely forgetting it my apologies it’s late) because when you take away something from any writing document the document becomes smaller and to fill it again you must then add other words … right? This is true.

    So how then should God be viewed?

    God is LOVE.(period)
    No filler, no unreasonable deity, no inconsistency. “love”

    So why is God going to go Old Testament on us again? Oh right you believe verbatim the book is God. Revelations; John’s dream his visions and his conversations with Jesus in that “dream”. Yes I know I have read I have been studying for 33 years all religions not just one religion I have perused a life searching for the truth but because you believe this word is true there is your error and that error is not your fault it is due to preadolescence programming.

    Religion much like public schools and government only teach you what they wish to teach you this is not always the error of the teacher because the teacher can only teach what is learned … the teacher can only teach you what they know or directly from a study book … yes? It’s not the fault of the parents, teachers, ministers, priests. This leaning or should I say false teaching started long long ago. Much like our government today this all started long ago the problems we face are due to lies, greed, yes even evil. But it started long long ago.

    This is our problem this is our evil these are our brothers and sisters that went bad and this is that we must defeat … not God. God will be proud of us when we win, God may give us a good day to fight but God will not be in the battle (in a way yes need to explain later). So sorry to tell you that. Of course believe what you must, but prepare yourself for the worst. My motto “pray for the best prepare for the worst” … yes.

    So I know someone already has this question for me. “Do I believe that Jesus is coming back?” because if I believe this then god is coming to kick butt …right?

    No, sorry to disappoint got three words for you; look this up “Blue Beam Project” OK, yes Jesus is coming but not like you think Jesus is coming. Don’t be fooled it’s apart of the programming that all good Christians lay down and die, that we see the rapture and all give up our lives to Jesus. That’s exactly what they want you to do. “Population Control”

    We will all one day reach enlightenment some sooner than others unfortunately because we need as many enlighten people as we can get today to overcome these issues that face us we may not have as many as we need. And when I say enlightened I am in no way referring to the Illuminati we will need to deal with these guys when the time comes. No what I am speaking of is a way to defeat evil and that is with love. When you understand this you will understand if we were united in love we wouldn’t be having the problems we face today if we were united in love these people and outside forces wouldn’t be capable of doing this to us. Instead we are asleep in fear to wake up, as long as we remain like this they will win. Fear is what silences love. They know this.

    Please I am not saying do not speak of God no never would I say this, my question was “why do we come to the conclusion that this has something to do with God?”

    Look God is already inside of you and in a way God is already here always has been always will be while your looking to the horizon for God the thief has already made off with your house, your car, your wife, and your children. But if you already knew God is within you you wouldn’t have been distracted looking over their and would have been able to save your house, your car, your wife and your children.

    Do you understand? Didn’t Jesus say my father and I are one he wasn’t just speaking of himself for later on in the story he makes it clear that all of us are like him or can be like him so if that is true than all of us can say we are also one with God. And this is the real truth.

    Friends in 1977? Jimmy Carter spoke to the American people about none other than the energy crises, what would happen to us if we didn’t act quickly what was going to happen to this country the economy, and our personal liberties. He wasn’t quoting scripture he wasn’t saying the reason this is happening is because the rapture is near. He spoke with intelligence and reasoning and still we didn’t listen and most of us are not really hearing it now.

    Please listen, lets accomplish this together because we can do this and it’s going to take a lot of work and a lot of love before we are truly free from the tyranny that has enslaved us all.

    Thank You Ron Paul for being an enlighten man for having the courage to speak the truth; it is a hard thing to do. And please I am not in anyway trying to offend any brother or sister I am trying to understand as my quest for truth is never done.

    May God be within of you, always.


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  • jason s

    please google or youtube “rex 84” and “matial law” and “bush grandfather” and if “Obama and McCain and bush are cousins” and “amero”& “nothern american union” google before it is to late and pass the word we are in serious trouble. rather than wait for what to happen to do some thing let do some thing before it happens. are freedom was not free we had to fight for it and if we don`t open are eyes we will be inslaved to a dictator like china or even worst silents for speak your mind “save america”

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  • Tom

    it is very simple – the us gov’t has been bankrupt since 1933 – The gov’t gave up one of it greatest powers a long time ago – banking- the power to coin money and regulate the value of !!
    The system is designed to collapse when the bankers choose it to do so !! The Fed and IMF will collapse America !!
    the personal income tax does not go to the gov’t – it goes overseas and is loaned out again !!
    right now most americans voluntarily follow ALL 10 planks of the communist manifesto !!
    Great Luck to America we will need it !!

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  • Kevin E. K.

    If only the American people were smart enough to realize that you can not pay off credit card debt by transferring itaway with another credit card; they might be able to see through all of the recent government scams. Most important to note however, we need to adopt Ron Paul’s vision of a non intervention approach for our foreign policy.We can not eliminate our debt problem which was created by credit without first learning to say no to foreign lobbyists and their foreign causes. Only a massive change in the congressional landscape and a permanent absence of the lobbyist pimps can save us now!

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  • Steven Christian

    Thank you Ron Paul for standing for what is right.Also everything evil under the sun all comes down to evil zionism.Yes I think the federal reserve should be ended.The ending of the federal reserve cost some good men their lives and that is how it survives today and keeps the poor poor.All I know is Obama and McCain have nothing to offer this country and God`s Judgment on America is about to begin.This Christian Jew explains it all.

    God bless you Ron Paul.

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  • D. M. Dillon

    In my post of this AM, I should have given the title of Browne’s earlier book,
    “How You can Profit From the Coming Devaluation” and not his later work on the “Monetary Crisis”.

    The question of not bothering to observe Gresham’s Law is moot:
    It always is in effect, and as Greaves and Mises long taught – Markets will always win. We just have to so conduct our public policy so as to always observe the Constitution; and never allow policy to be used to restrict, suppress, OR play favorites in the market place.
    (Of course, individuals are free in free markets to participate or not; policy and law are best restricted to the settling of disputes and enforcement of contracts when arbitration fails.)

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