Barack Obama, Inflation and Economic Fascism

Channel: CNN
Date: 4/14/2009


News Anchor: …eventually went to John McCain, and Congressman Paul is on the line with us. Congressman, thanks for your time, we appreciate it.

Ron Paul: Thank you, good to be with you.

News Anchor: Hey congressman, do you give the president’s policies credit for thawing markets and auto sales and student loans? What do you think about what the president said in his speech?

Ron Paul: Well, I don’t think a whole lot of it. I think we had a new deal and a fair deal, but I think this is going to be a bad deal and not help at all. But I don’t blame him for the problems, I blame him for the prolongation of this, because he was very explicit by saying that government shouldn’t cut back on spending. He wants to massively increase the spending. And therefore, he is going to prolong it.

But this was a long time in building. This took 25-30 years to build the bubble. And everything he talks about is re-inflating the bubble and buying up bad assets and then later on we’ll deal with discipline. But he had mentioned that individuals don’t want to spend money because they’re doing the correct thing. They’re cutting back, they’re saving. That’s what an individual is supposed to do.

But a country shouldn’t be any different. When you spend beyond your means and have too much debt, too much borrowing, that’s what you have to do. And his statement that if government didn’t do this it would prolong the depression… he’s absolutely wrong on that because that is the understanding of the depression. It was prolonged because of the intervention of Hoover and Roosevelt.

News Anchor: Okay, congressman, let me jump in and ask you this: Do you believe the markets would have cleared away the wreckage in our economy, to use the president’s words here, without the 787 billion dollars stimulus package?

Ron Paul: Well, it wouldn’t be completely done, but this way it is going to go on for years and years and they’re going to destroy the dollar. I’ve use the analogy about a sound foundation, but the foundation should be on a sound dollar, and he never even mentioned the Federal Reserve. The only time he talked about money was when he said, “you know, if we create one dollar and put it in the bank we get interest 7 or 8 dollars”. He’s preaching inflation and that’s how you destroy the value of the dollar. That’s actually the way you liquidate debt, too. Unfortunately that is a tragic way of liquidating debt, because you punish those ‘foolish’ people who are out saving money and planning for their future because they want to take care of themselves. So we preach a deliberate policy of ruining the people who act fiscally responsible.

News Anchor: Go you. So you clearly are suggesting that a different set of policies would have shortened the duration of this downturn. Give me a couple of areas… just two… that’s all I have time for, I’m sorry. But give me two policies that you would have pursued differently from the president, that might have curtailed the length and depth of this recession.

Ron Paul: Okay, maybe if General Motors went bankrupt one year ago and somebody bought up the bad assets, so they can get their house in order or something, that would have been over and done with and we’d be back buying their cars by now. Because right now we are not going to buy their cars, because we don’t know what the government is going to do to GM. The same way with…

News Anchor: Did you suggest that to President Bush, “Hey, GM is in trouble, let them go under?”

Ron Paul: No, but that’s why I said that Obama isn’t to blame to all this, this has been a long time coming, and that’s what we have to understand. It’s Keynesian interventionist economics that we’re pursuing, they went awry and now all we’re doing is accelerating it. It leads to a business-government partnership which trends towards fascism.

News Anchor: Wow!

Ron Paul: It is socialism, but when you get in bed together and businesses are owned and regulated and controlled, that adds a fascist aspect to socialism.

News Anchor: Okay, can I say something to you? You know what? Very few people will remember the context in which you used that word ‘fascism’. Is that responsible to toss that word around?

Ron Paul: Well, that is if you don’t understand economic fascism versus military fascism, and I am not referring to military fascism. I’m strictly talking economic terms and there is an economic fascism where government and business are partners. And when businesses get into trouble they love that. Is it the [big] guy that’s going to have the tax rallies tomorrow? No. It’s not the big guys. The big guys are getting all the benefits. The little guys are having the rebellion because they haven’t received anything. So they are sick of this type of partnership where the big guys get bailed out and when times are good they get low taxes and they make million. But no, I think you have to understand there is a difference between economic fascism and military fascism.

News Anchor: Well, I wanted to at least give you an opportunity to expand on that statement. Congressman Paul, thanks for your time. We appreciate it.

Ron Paul: Thank you.


  • I was always told in school that fascism is on the far right,
    while communism is on the far left. The truth be told, both
    of them are in the same totalitarian bed together. No freedom
    whatsoever, just as is quickly happening today in the United States.
    Instead of Hitler and Stalin we have the private Federal Reserve
    System, aka, the Central Bank as our taskmaster. The “Fed”, along
    with their “Brown Shirts” the IRS has caused untold misery and suffering since 1913. We need another 24/7, four year long French-style revolution. This time around, against the Central Bank. How much longer must the people endure?

  • RonT

    This was an interesting look at our president. It’s almost a 2hr documentary but worth watching.

    Ron Paul we need you as a our president we live in a puppet government but as long as we stand with you they will not make a puppet of you. We have been deceived a revolution must be and no more puppets running our government for Wall Street and the NWO.

    We need our constitution back!

  • Wilson

    So Ron Paul is saying Reagan and Bush family uses fascist economics?

  • Jim O

    Economic fascism is only the beginning – to deal with the resulting community unrest, military fascism is sure to follow. I believe that is the ultimate agenda of the democratic party – they believe that we, the American public, must be told what to do, for our own benefit.

  • Tommy D

    Fascism is exactly what he said it was. Funny how the news reporter got up in arms at the word and doesn’t even truly know what it means.

  • Jonathan Carey

    I love Ron Paul and everything he stands for! I don’t know if you read this Dr. Paul, but if you do, THANK YOU! I can’t wait to vote for you in 2012 πŸ™‚

  • paranoiastrksdp

    The best thing we could do to combat inflation is return to sound currency, but with a twist. Instead of backing our cash with precious metals (which puts an ultimate cap on how large an economy can grow to be), we should back our cash with units (like megawatts) of energy. Seems like energy is what all the fuss is about these days anyhow. I’d like to know that my dollars have something practical and utilitarian backing their value.

    • paranoiastrksdp its been backed by a barrel of oil for 50 yrs