In the interview, Ron Paul reveals the name of the person who is most responsible for the crisis, condemns the scaremongering tactics and planned takeover by Obama and his cronies, and reports on the shenanigans surrounding the passage of the stimulus bill.
Station: 1210 AM The Big Talker
Host: Dom Giordano
Dom Giordano: We’re happy to welcome back Representative Ron Paul, Congressman Ron Paul in the Big Talker 1210; Congressman welcome back.
Ron Paul: Thank you good to be with you.
Dom Giordano: Well Congressman, I had Bill Press on last night. Every prominent person I bring on, we’ve been asking them, coming off TIME magazine, who are the one, two or three people, because there are a lot of them I guess, that are responsible if you had to sort out responsibility for where we are now?
Ron Paul: Of course, sometimes I think immediately about the philosophy that does it rather than the individual.
Dom Giordano: Okay.
Ron Paul: But who were the individuals that did it? But philosophically it’s the economic system we have of interventionism and inflationism and the Federal Reserve. But I would put the person who’s had the biggest contribution to the bubble was Alan Greenspan.
Dom Giordano: Greenspan, yup, and for what reason? What did he do?
Ron Paul: Well because he was there so long, and every single time the market was saying things are getting out of kilter and out of whack and the market wanted to correct, he would inflate more and aggressively and not allow any correction to happen; so he kept the bubble going much longer. So his sophistication in preventing the recessions actually created the situation to be much worse than we’ve ever had before. So I think he’s on the top of the list.
After that I have to look to both the Congresses and the Executive Branch, and I would think the Republicans were every bit as responsible as the Democrats, because unfortunately during the last 8 years Bush didn’t veto one single spending bill. When you run up deficits you put more pressure on the Alan Greenspans to print the money, and that’s where the bubble comes around. So I don’t put more blame on Clinton than I do on Bush, and then if you look at all the Speakers of the House for the last 25, 30 years you have to blame them as well.
Dom Giordano: You’re rolling. I think we should make you the commissioner; I’m looking for a commissioner. You’d be the perfect guy because you go after all of them Dr. Paul.
Ron Paul: Yes, but what about the people? Maybe you could blame the people too they’re the ones who wanted freebies. They want the free welfare and corporate welfare.
Dom Giordano: The American consumer but our listeners have given it zero so far, but TIME magazine has the American consumer in fifth place. They haven’t blamed you; I don’t think you ever will be for this. Let me ask, in your view, how much of this was fuelled by the Housing Crisis and then how much by the separation between the bank and the bank investment type of thing? Those are the two principle causes a lot of people throw at.
Ron Paul: The separation has nothing to do with it. I mean, it seemed to have because there was so much inflation, but if you have sound money people can’t speculate and overextend themselves, so I don’t think that is it. Now the housing bubble, they say the housing bubble was the cause. That was one of the major symptoms; it was just one of the things that had been severely inflated. Actually our corrections finally got a foothold in the year 2000; that’s when NASDAQ collapsed, you know up to 5000 and that never recovered just because DOW went back up again and touched on new highs.
The real message came in the year 2000 and then, once again Greenspan comes in and he says, “Wow this is dangerous, I got to really print the money.” And so he goes full force and he says “Create one more bubble; the housing bubble,” and he was able to do that. The Housing bubble was just a symptom just like the NASDAQ was a symptom, but right now the big bubble is in the Treasury bills and that’s Bernanke’s bubble. People are still buying Treasury bills and parking their money and hesitant to spend it and invest it and do all those things that free markets are supposed to do, so we had a very bad time with Greenspan creating the bubble. But Bernanke is every bit as dangerous now because he’s on the verge of totally destroying the dollar.
Dom Giordano: When we got to the middle of September, Congressman Paul, did you think, even if it was the wrong corrective, did you think we were facing any kind of economic Armageddon? Was that overblown in your view, or do we have real fundamental problems because of all these things that were done that we were going toward a collapse?
Ron Paul: Well, I think it was very, very serious but I think they used it to overstate it to promote what they wanted, not to do the right thing. Now it was very serious, but if you had done the right thing you should have told the people “Look it’s tough. It’s just like if you spend too much you have to go back to work and pay off your debt, and we as a nation can do it. We’ve done it before. It will take up a year or so and there’s going to be some unemployment,” and reassure them that we can all get back on our feet. Cut the taxes, cut the spending, reduce regulations and it wouldn’t have been so bad. But they weren’t intending to do that they wanted to expand the government especially you know, with this new administration. I mean, has Obama come in and said “Oh you know, things are okay and tomorrow it’ll be alright.”? You know, he’s scaring the death out of everybody because he wants to take charge. He and his cronies want to take total control of everything, and even today the speech he gave I mean it just scares, it should scare everybody about how much the government’s taking over. I mean we are moving rapidly toward total nationalization.
Dom Giordano: Yeah I think that’s exactly right. Now before we go forward and take listeners inside the stimulus, you put up a video and I’d like you to tell them where people can find the video, where they can do an extended basis, lay out what it was like going through the stimulus.
Dom Giordano: CampaignforLiberty.com, okay.
Ron Paul: Right. It might not be right at the top of the page now you might have to go down a little but it can be found on CampaignforLiberty.com.
Dom Giordano: Now what was it like for you, you have to be crawling the walls given your position on a lot of these things, that you weren’t able to offer amendments? I guess there wasn’t much real debate as they surged toward… And was it true, this had to be voted on Friday because Speaker Pelosi was headed off to Italy?
Ron Paul: Well, that’s all we, you know, part of it, but they wanted it before we took that break, because we were not in session this week, so that was probably the biggest motivation. The fact that we had a break, people had these trips planned, so there’s probably been a lot of people making trips. I happened to be in my district here in Texas. But they needed to get it down into this momentum type of thing, and Obama going out there and parading around and bragging how much they’ve done in this short of period of time. And when I look at what they do, it just depresses me on what they’re doing here or there, they’re chanting and cheering on how wonderful, how much they’ve achieved in these short few weeks.
Dom Giordano: Doctor Paul, with your words now I’m following the poll in real time on my website. The American consumer has shot up now to be 7% of the problem and Bill Clinton has dropped 40%. You’re a magic maker here, you can run elections here in my show and Alan Greenspan now is at 13%. He was a…
Ron Paul: And they put Bernanke real close to him.
Dom Giordano: What do you see, what can you tell me because I had on the woman who at best in the popular media of exposed the notion, there were healthcare restrictions in here that could lead to some pretty serious stuff. What do you think is in there as far as the healthcare restrictions they’re going with through the government?
Ron Paul: What they’ve done is they’ve opened up a new database and the Federal Government will control it, and the way I understand it every transaction will have to be reported to the Federal Government. That means if I’m the physician and you’re the patient, anything we do or say or touch, there’s going to be a record of this to make sure that I gave you the right advice, and gave you the right medication, and didn’t overstep my bounds, didn’t use more expensive medicine than I have to. It is a huge bureaucracy. If anybody cares about the doctor-patient relationship, they should be very, very concerned because it’s been undermined for decades now. But what they’re doing now is really practically destroying it, totally and completely.
Dom Giordano: And I believe also in there we were told that there’s also this notion of forcing physicians like you to follow so-called best practices. In other words, you know, you don’t have this idea of what your doctor might use in his judgment. You’re going to have a computer model to contain cost. That’s also in there.
Ron Paul: Right. And you know, medicine has become very defensive. I’m not currently practicing but early in my career I didn’t worry about it, but later on everything that I did, especially since I was an O.B. it was, “Hmmm how is this going to be interpreted tomorrow? If something goes wrong, out of my control, out of everybody’s control, but if it goes wrong, how am I going to explain it to the attorneys?” So first you had the attorneys, now you’re going to have to explain it to the bureaucrats. Because if you don’t fulfil their protocol they’ll come in and suspend your license, they’ll put you on a blacklist and all kinds of things. So there’s going to be a lot of people who won’t want to practice under those conditions.
Dom Giordano: We’re talking with Doctor Ron Paul, Congressman Ron Paul. I watched some of your video presentation today and in there too you talk about the notion, and I kind of share this and fingered it. You run up the bill to over a trillion of what you’re going to put in, and then when somebody cuts out a hundred billion you go, “Wow we’ve cut out the pork.” I mean it’s the oldest game in the world.
Ron Paul: Yeah, and it’s sort of a psychological trick that they play. The other thing that bothers me a whole lot was you know, the effort I made to read the bill and find the bill and it wasn’t available the night before. It became available on a website after midnight, and of course nobody’s reading a thousand-page bill at midnight. There were essentially no hard copies until the next day, there were 5 total for the whole House. They were on the House floor and they were not bound, they still had scribbles on the side which were considered authentic, there was still some handwriting.
Dom Giordano: Ohh! And you’re voting on a…
Ron Paul: And we’re voting on it, but the other thing is that they went when I was checking with my staff, “Do you have it? Do you have it?” – “Oh no but we have 120 pages of it because so and so sent it to us here.” Some of the staff people who were their friends, they take care of their friends and they send copies of it out to the lobbyists. So the lobbyists through the banks or some other groups sent it to my staff and that’s how I got the information.
Dom Giordano: Wow.
Ron Paul: If that isn’t an insult, I don’t know what is.
Dom Giordano: I’m loving the handwriting on the side too, and this is what we’re voting 800 billion dollars on.
Ron Paul: Yes right, there you go.
Dom Giordano: Doctor Paul thanks for fighting the good fight on this one. Would you please give that website where people can go and see this video?
Ron Paul: CampaignforLiberty.com
Dom Giordano: Thanks Doctor Ron Paul. Thank you for joining us tonight.