Ron Paul: Economic Conditions Have Not Changed

Channel: CNN
Show: American Morning
Date: 5/27/2009


Kiran Chetry: Well, if you’re feeling better about the economy, you’re in good company. More than 90 percent of leading economist say they see the recession ending this year. They were surveyed by the National Association for Business Economics. These expert forecasters say they expect a moderate recovery, but unemployment, often known as a lagging indicator, continuing to rise.

In a recent C-SPAN interview, President Obama was asked about the $1.7 trillion debt the government has racked up along with an $11 trillion deficit and he had this sobering response, “We’re out of money.”

One member of Congress has been sounding the alarm on out of control spending. He is Texas Republican Ron Paul and he joins us this morning from Clute, Texas. Congressman, as always, it’s good to talk to you this morning.

Ron Paul: Good morning. It’s nice to be with you.

Kiran Chetry: So President Obama says that in the short term, the government needs to spend this money to salvage the overall system. Do you agree that the short-term spending is okay, so long as it’s not protracted and the end goal is to reduce our debt and deficit?

Ron Paul: But he contradicts himself. He wants to spend more money, but he admits we don’t have any money. So the question is where does he get the money. Well, we can’t tax the people anymore. They’re overtaxed and the economy is weak. The commonsensical to do is to cut spending, but nobody wants to cut spending. Everybody gets everything that they want in Washington, whether it’s overseas spending or any welfare spending. It’s endless.

Just this week, the President promised $100 billion to the IMF and he says we don’t have any money? I mean, it makes no sense. It’s just absurd. The people are outraged over this. They can’t figure out what we’re doing in Washington and I go there on a regular basis. I can’t figure out what they’re doing. They seem to live in a different world. They’re not living with reality.

To get out of bankruptcy, when you don’t have any money, the goal is “to spend more money, run up more debt”? And it makes no sense whatsoever.

Kiran Chetry: Does Congress have the ability and the will to try to put some strings on that as you guys talk about these budgets? Are there timelines in place, so that it’s not just rhetoric, but that there is actual process of showing how we’re going to eventually try to make sure that we pay this money back?

Ron Paul: Yes, they have the absolute responsibility, but they also ought to realize what history shows that once you get a certain amount of debt run up by a government, it’s never paid back and we’re past that point.

Debt is always liquidated. The only question is how you liquidate debt. Now, General Motors is going through a liquidation of debt. That’s the way you should do it. Governments don’t do it that way. They liquidate debt by devaluing the currency and paying back their debt with money that has no value. That’s what they’re working on.

They want inflation. They want to be able to take this huge amount of debt, and if we owe $11 trillion and you have a 50 percent inflation rate, you know, you’re down to $5 and 1/2 trillion. That’s what they’re working on. They’re begging and pleading for inflation.

Kiran Chetry: Well, the interesting thing. I mean, you’ve talked a lot about your concerns over the value of the dollar and in the fact that the Fed just can print money and you called that whole notion absurd. Yesterday, we saw a little bit of a bounce in the dollar. People still want our debt across world.

Ron Paul: You know, that is true because everybody else has a fiat currency too, so when the dollar goes down, it doesn’t necessarily mean the Yen and the Euro is going to do well. It means that prices may go up and will likely go up in all currencies.

But once they panic and get out of the dollar, so far they’re going to the dollar, and that’s right. The financial system has collapsed. The house of cards has come unglued and that’s why we’re in such trouble. So the dollar fiat standard has broken down, but the dollar, people will hold dollars. They will buy Treasury bills. Even China is buying them.

Kiran Chetry: Right.

Ron Paul: But they’re between a rock and a hard place because they don’t want to destroy the dollar. But eventually, it has to happen because you can’t create $2 trillion in one year and run a deficits of that magnitude and not expect the value of the dollar to go down and it’s coming. It’s coming soon, maybe within a year or two or three, but it will come and it will be a lot worse than what we’ve just gone through. So this reprieve that we’re having…

Kiran Chetry: Now, I know what you’re saying, but what about some of these assessments that we are seeing some signs of life in the economy as we’ve just talked about before we brought you on. Some of the leading economists say that they see the end of this recession coming sometime in 2009. Perhaps, does that support the notion that maybe some of this spending to get the economy back on track has been working?

Ron Paul: Well, I think a lot of people believe that, but I think they’re totally dreaming about it. I mean, if you can look at spurts in the 1930s, but usually it just led to bigger trouble down the road. By 1939, unemployment was like 18 percent, so it never improved with all this interference in the 1930s and we’re doing the same thing again, only I think it’s a much bigger problem that we’ll have this time.

So because you have these blips, people are always hopeful, but the conditions have not changed. We have not liquidated the debt. We have not liquidated the malinvestment. We still have 19 million uninhabited houses, houses up for sale and we’re trying to prop up housing prices and we’re trying to get people to build more houses, so it makes no sense.

Even the bankruptcies, General Motors should have been bankrupt a year ago and it would have been cleaned up, but now, we’re involved in the bankruptcy. It has become politicized. Our government is dictating what the law should state. The court should deal with this. We shouldn’t decide who or which bondholders get the benefits. So it is a mess that we’ve created and we believe it’s the [more] regulations that we need.

But believe me, free enterprise and sound money did not bring on this problem. It was interventionism, corporatism, and crony capitalism. This is what gave us our problem. So we’re going to remain in this mess until we realize what we need is more freedom, sounder money, and get the government out of the way and let the debt be liquidated and get rid of the malinvestment.

We don’t need more of the same that created our problem.

Kiran Chetry: All right. Well, Congressman Ron Paul it’s great to get your point of view and your take on things. Thanks for being with us this morning.

Ron Paul: Thank you.

News Anchor: Well, you always know where he stands when he wrapped up an interview.


  • Great task publishing Ron Paul: Economic Conditions Have Not Changed. I would like to read more on this subject.

  • MartyKirschner

    CNN, MSNBC, FOX, ABC, NBC and CBS. These news shows are detrimental to the American way of life. I don’t think the founding fathers ever meant for the press to have this much power. Like everything else in this country, we have been marginalized intellectually by intellectuals with motive, who don’t have a clue what they’re talking about. Don’t get me wrong, I am a firm believer in Freedom of the Press however, the job of the press is to inform the people and to keep the government honest. What it has morphed into, is a brainwashing machine that reports the news by editorial and by omission. They control what you know about the news. We should demand that the press give us the news, not create the news.

    In the instance of Ron Paul, I think it’s extremely disrespectful of the press to exclude him and not report him simply because they don’t like him or disagree with him. At his age, it must be very difficult to take. He doesn’t deserve it and his message is just as important as every other candidate if not more so, because apparently he’s the only one who has a different opinion.

    After rolling this around in my head, the only logic I can take out of this, is that the press wants Obama to get re-elected because Israel has had a sense of security under him. They don’t want Ron Paul going against Obama, his viewpoint could spread. The rest of the candidates are easy for Obama. I think the GOP picked these clowns because they knew that all of them had either heavy baggage or a non-grasp of the issues.

  • Christine

    Our Peeps at Work!

    Questions for Ben Bernanke at forum in Kansas City

    Bernanke Unplugged! – the Heartland Tour, Kansas City – 26 July 2009

    Bernanke to the sheeple: don’t even THINK about auditing the Fed, you swine!

    (Ron Paul has asked Bernanke if he would be willing to have transparency with a routine audit 6 months to a year following a FED decision. Bernanke still held to “independence”, not having congress control monetary policy in this way, even though the audit would be AFTER the FED decision.)

    Ben Bernanke Unemployment to Peak at over 10% in 2010 –Town Hall w/ NewsHour PBS

  • longshotlouie
    • sean

      It wont. You obviously have no idea what the great depression was like if u think this will be worse.

      Why would you call ben bernanke a horrible economic forecaster than use his forecasts to back up your wild assumption?

      • longshotlouie

        Wow, you really cannot hear yourself.

        • sean

          I’m speaking plain and simple.

          So you think people are going to end up on the streets hungry and the majority of families will give up christmas? You think its going to be worse than the Great Depression?

          I didn’t watch the news show but i watched him speak in 4 hours of testimony last week and said the economy was going to start recovering this year. I know that is why the stock market is doing good right now, so who knows what you are talking about.. I bet you didn’t watch the show.

          • longshotlouie

            Enjoy your dead cat bounce.

        • sean

          I speak with logic, you rant on with insults and no comprehension WHAT SO EVER.

  • Nate Y

    James Madson – True Patriot, lover of liberty, proponent of limited government, and advocate of sound money.

    Let’s read his thoughts on paper money shall we?

    “The extension of the prohibition to bills of credit must give pleasure to every citizen, in proportion to his love of justice and his knowledge of the true springs of public prosperity. The loss which America has sustained since the peace, from the PESTILENT EFFECTS OF PAPER MONEY on the necessary confidence between man and man, on the necessary confidence in the public councils, on the industry and morals of the people, and on the character of republican government…” James Madison – Federalist Paper #44

    Thank you James Madison for speaking and writing so eloquently on the evils of paper money. I just hope more people will come to heed your well earned wisdom. I look forward to the day when we will once again respect The Constitution you and the other Founders worked so admirably to create. When that day comes we will do away with the vile bills of credit, follow the Constitution, and demand that gold/silver be legal tender once again.

    • Sean

      Ya, he got rid of the central bank.

      • Sean

        well he created a new national bank.

        They say he was originally for a strong government, than he was for a limited government and then became president and turned to his original self.

  • Wow I’m so glad that I read this post.

  • I love your posts! Please write more often if you can

  • Pingback: Ron Paul on AntiWar Radio | Ron Paul .com()

  • RonT

    I love to hear Ron Paul speak. He speaks my language, he is easy to understand and he never deviates from the truth. He is one of the few politicians that you can track year after year and he still represents the same values as a champion of the constitution. People are waking up to Ron Paul’s message. Only an idiot would disrespect this man. I just love to hear his message and know that it is reaching people. One day, hopefully we will no longer be slaves to a monetary system of government. One day we will be free Americans again and realize we are all in this fight together.

  • longshotlouie

    …. as the dollar falls inflation rises. That is because we don’t produce much anymore and as the dollar declines the cost of imported goods rises, including oil. By the end of the year oil could be $80 a barrel and gasoline over $3.00 a gallon. It started to feed on itself two months ago.

    As long as the privately owned Fed and the rest of the Illuminists are calling the shots speculative market dynamics and casino chaos will reign. These arrogant criminals are taking gambling to even greater heights. They profit because the Fed briefs them of what is going on so they can reap riches. Manipulation is the order of the day. All Keynesian thieves love massive stimulus as the bubbles burst. This time there is no way back. This repeat will rival the collapse of the Lombard System in Venice in 1348. The more important question is will we have another plague to accompany the Illuminist plague?


    • Christine

      If the economy/dollar collapses, then how does the government pay the American military?

    • Christine

      May 27 2009

      “Today investors cannot conceive how bad this depression is going to get. Even the Bilderbergs see they cannot handle what is coming and want to reverse the process. Unfortunately it is too late for that. There has been no return since June of 2002.”

      “In just two years we will again face this debt bomb to go along with ALT-A loans, Option-ARM-pick and pay loans and prime loan failures due to rising, encompassing unemployment. That will occur in 2011 and 2012. The failure of the housing market is only 40% to 50% over. All this is happening as policymakers, Goldman Sachs, JP Morgan Chase, Citicorp, etc., and the rest of the elitists are shifting all the debt from the financial sector to the American people.”

      • Sean

        Overall the failure of the housing market is stabalizing because all the new government programs help people from defaulting on their laons.

        Banks are now making profit so the financial system is stablized. The reason why they are swiching from debt to depoists is because people are saving more, and that is very very healthy.

        The only lagging indicator will be job creation.. There isn’t going to be some magical spur of new jobs. Job creation if anything will continue at the rate it was going before the crisis. It will take time for jobs to build and catch up to the point where they were at. It will take years, but we will have a stronger system when it’s all said and done.

        • Christine

          and the lack of job creation, job loss results in foreclosures and the creation of tent cities. I worked foreclosures. I know the stories.

          1. Job Loss
          2. Medical Costs
          3. Divorce

          The commercial foreclosures ahead will cause even more job losses with the business failures. It appears residential real estate is not done failing. Somewhere along the line I read where the plan was to dupe the public into thinking they could have confidence in the system, only to be fooled twice. Another heist.

          • Nate Y

            Well said.

          • sean

            Oh nate tells me to stay away from his posts and continuously responds to mine.

            1. The government has added numerous foreclosure prevention programs that will help people renegotiate their contract and avoid bankruptcy.

            2. We still have TALF and TARP to buy up whatever assets go bad in the future.

            3. Unemployment has bottomed out and the foreclosure rate has “substantially” dropped.

            4. Credit has eased up so commercial industries will not continue to fail.

            You have become a sucker to right wing propaganda.

          • sean

            The past two days we have had a “historical breakthrough” in negotiations with China.

            They explained the major problems we have in our financial system with unbalanced trade (as I have over and over again, and you stupid people argue). The whole discussion supported everything I have been saying this WHOLE time. (except they want to use other means than protectionism) They are going to boost chinese domestic spending and domestic investment and allow us to export goods to them…

            Listen to Tim Geithner like 6 min into it after hillary clinton.

          • Christine

            My initial thought…China has to start buying some of their own crap. America is broke.

            The problem is, what does America export? It all sounds good, but what do we have to export?

          • longshotlouie

            OMG, not another “historical breakthrough” !!


          • sean

            China is going to start buying some of their own crap. They are going to increase demand for money with lower interest rates which will spur domestic consumption over there.

            We will start exporting electronics and some other goods to china.. It is important to note that our financial system has been adjusting to our imbalanced trade for almost 40 years (fiat currency). They said that when we stop importing so many goods, and start saving, that we will stop all this deficit fiscal spending from the government (which supports another point i was trying to make, that the government spends money to replace money spent overseas).

          • Christine

            Now where have I heard that before? “They are going to increase demand for money (credit cards, loans) with lower interest rates, which will spur domestic consumption over there (China). Hmmm…it just sounds so familiar, Sean. I can’t put my finger on it, but I’m sure I’ve heard of that financial strategy before SOMEWHERE.

            It put a nation of “free” people in debt up to their eyeballs.

          • sean

            haha ya right. They aren’t free in any way. They get paid like 64 cents an hour. Individuals in China are already in debt, lowering interest rates only makes their debt CHEAPER. Investors can then invest domestically instead of in our country; where it is currently cheaper. This will help raise income for all their own people, so they can raise their standards of living.

          • Christine

            I was not referring to China being free, Sean. I was referring to US. Thinkaboutit.

            Will they offer their people ARMs too that will reset?
            They can all look forward to receiveing introductory interest rates on various credit cards, that will skyrocket to 21 – 30% interest. I’m sure Hillary and Timmy filled them in on how to do it. I smell a Chinese heist in the making.

            If only they really cared about the people instead of their agenda.

          • sean

            Again, you are thinking backwards. They are lowering credit instead of raising it. It will spur new demand for investment with higher paying jobs. Instead of china investing here, they will invest in their own country. It doesn’t take rocket science to understand that it will be good for their country.

            The raising interest rate with our credit cards have nothing to do with our federal interest rates.. I’m not even speaking of credit cards. We are talking about two totally different things.. I’m talking about lowering banking interest rates on loans for new businesses, not consumer credit.

          • longshotlouie

            Someone is confusing bank to bank credit rates with consumer credit rates. Very few are getting credit these days, much less cheap credit. The banks got the cheap credit and now they are hoarding, like they want to accuse the ‘useless eaters’ of doing.

          • Christine

            I am speaking of both means of “credit”, loans and credit cards. They (Chinese) best read the fine print.

            Lower credit costs, people spend wild, debt is incurred, people do not make enough to pay their bills, debt is incurred. Heist!

          • Sean

            Nobody benefits from people defaulting on credit card debt and would not be considered a heist in that sense.

            You do make a valid point though.

          • Christine

            It is a heist when they raise intrest rates on credit cards after you’ve been using one for years.

            In the all of it, there is a way for people to decide to live without all this economic drama. Quality of life has to be the agenda. It’s just that so many people prefer the drama to peaceful ways of living, those times when we are truly interactively generous.

        • longshotlouie

          Did you say we are failing slower?

          The sad truth is that we were just hit by the first wave.
          The next wave will be larger and more destructive.
          If you listen to Sean, you will rebuild your house on the beach.

          Sean and Benny were wrong, and they continue to be wrong.

          • Nate Y

            Indeed. Good vid.

          • Sean

            I was never wrong, I never said there wasn’t a housing bubble. you are a longshot away from the truth.

          • Sean

            Peter Schiff wrong MANY of times..

            12 Ways Schiff Was Wrong in 2008
            Wrong about hyperinflation
            Wrong about the dollar
            Wrong about commodities except for gold
            Wrong about foreign currencies except for the Yen
            Wrong about foreign equities
            Wrong in timing
            Wrong in risk management
            Wrong in buy and hold thesis
            Wrong on decoupling
            Wrong on China
            Wrong on US treasuries
            Wrong on interest rates, both foreign and domestic


          • Sean

            Many people have lost up to 70% of their money in the past two years with peter schiff as their investment advisor.

          • Sean

            This is where me and peter schiff agree, and obviously you people don’t.

            “The problem with our (trade) deficit is that we import consumer goods we can not afford to pay for with either exports or foreign earnings. As such we accumulate external liabilities that we will never be able to repay and our nation’s future productive capacity continues to deteriorate. We are de-industrializing and are condemning ourselves and future generations to falling standards of living.” -Peter Schiff

          • longshotlouie

            Geez, here we go with the Sitka advertisements again.
            Sitka Sean now, is it?

            In your first two Schiff posts you make unfounded ascertions, the third describes living beyond our means.

            You get more pathetic by the day, and from what I read of yesterday’s posts it is amazing that you can get any more pathetic.

          • sean

            They are founded assertions, I provided a link..

            Thats funny, I thought the same about u, seeing how you can bitch and bitch and bitch but not come up with any proper argument for what your bitching about. You need to grow up and stop trying to talk if you don’t know what the hell you are talking about.

            You need to lay off Ron Pauls teet.

          • sean

            Peter Schiff lost 40-70% of his clients money in 2008 because he thought that the world equities would hold strong and only the dollar would collapse. He purchased foreign equities and commodities, which all plummeted.

            He was correct about the housing bubbles, but he had no idea how the world financial system would respond.

          • longshotlouie

            “I provided a link”

            Gee, thanks
            Your argument made the rounds last month. It was trashed.

            Now you follow up with a statement that you cannot prove.

          • sean

            I defiantly didn’t make this argument against peter schiff. You keep feeding bullshit over and over.

            This is a known fact with over 20 articles describing it, also coming from people who’s money he poorly invested. You are a joke. A horrible liar that bitches all day because he doesn’t fit into society..

            You can’t prove the fed has done any wrong doing, so you should shut your low life mouth.

          • sean

            Here is your proof. The Wall Street Journal Speaks of Peter Schiffs bad investments.

            “Mr. Schiff’s Darien, Conn., broker-dealer firm, Euro Pacific Capital Inc., advised its clients to bet that the dollar would weaken significantly and that foreign stocks would outpace their U.S. peers. Instead, the dollar advanced against most currencies, magnifying the losses from foreign stocks Mr. Schiff steered his investors into.”

            “Most had one thing in common last year: heavy losses. A number of investors said their Euro Pacific portfolios lost 50% or more in 2008, worse than the 38% drop in the Standard & Poor’s 500-stock index last year. People familiar with the firm say that hardly any securities recommended by Euro Pacific brokers gained ground in 2008.”

            “Critics say Mr. Schiff’s strategy is much riskier and more aggressive than many investors realize. David Yeske, managing director of Yeske Buie, a Vienna, Va., money manager, says Mr. Schiff’s investment strategy was a focused bet on a single outcome, rather than risk management for investors looking to protect assets from an economic collapse. “He’s a speculator; he thinks he can see the future,” says Mr. Yeske, former chairman of the Financial Planning Association. “That’s not really risk control.”

            This and much much more info PROVING my claim from the wall street journal.


          • longshotlouie

            Again, they, and you, are speaking of a particular period of time (1 year). He may still be correct.

            Your MSM hit piece articles change nothing.

          • sean

            Your correct, it didn’t change anything. You will still lie to save your “internet reputation,” as if it is all you’ve got.

            The WALL STREET JOURNAL backed up everything I said. Yes I am speaking of a particular period of time. I never said otherwise. I have proved my point. You are trying to pull another nate. You will deny my claims with whatever proof I had. If I went out and talked to one of his investors myself, you would still talk bullshit and try to make me look bad in some other way.

          • longshotlouie

            You still speak as if the ‘game’ is over, when it has only begun. Enjoy the bounce.

          • sean

            So this is a game to u, with twists and turns at the roll of a dice. Tell me ONE reason why I should think the economy will get worse. It seems as if you are convinced. Convince me.

        • Nate Y

          I didn’t respond to yours. I responded to Christine’s.

          We’ll see if your “unemployment has bottomed out” statement proves true. I’m betting against it.

          • sean

            It has bottomed out for the most part. I doubt unemployment will reach 11%.

        • Nate Y

          Okay then. How about this…if unemployment (measured by the bogus government stats) reaches 11% nationwide or the US continues to shed more than 200,000 jobs for the months of July and August, you will stop posting on this site.

          • sean

            HAHA! Your just upset because I proved you wrong that credit money is constitutional! Why are you still replying to my comments? I think your pretty stupid and you have a pathetic understanding of government and economics.

            Hahahaha! oh wait, do you still think that money isn’t credit? You are very confusing and inconsistent.

          • G Dansky

            The rest of us missed it, Sean. Could you do it again?

          • Sean

            It is in the articles of confederation. And James Madison, the author of the constitution in his letters talks about bills of credit and says they are legal.

            “The present Congress can make requisitions to any amount they please, and the States are constitutionally bound to furnish them; they can emit bills of credit as long as they will pay for the paper; they can borrow, both abroad and at home, as long as a shilling will be lent.” – James Madison “Father of the Constitution”

          • G Dansky

            O my shiny dingleberry, the Constitution is the law of the land.

            Did Madison ever land squarely on one side of that central bank idea?

          • Sean

            the constitution does outlaw states from creating money other than gold or silver because it would defect trade in between states. In a different section, it allows the congress to regulate the currency.

            Madison was against the central bank and shut it down when he became president. He was against paper money, but gave the congress the powerful rights to create money (bills of credit) and create an army.

            He says that giving the congress both of these authorities were not dangerous, but “lifeless mass” because it is dependent on the state and congress to act.

          • G Dansky

            Congress, not a private bank.

          • Sean

            The Federal Reserve is a government agency. The local federal reserve banks are privately owned, but just do the governments bidding. They don’t make any decisions or profits..

            There is nothing outlawing central banks in the constitution.

          • G Dansky

            They shirked (delegated) their responsibility (authority).
            The customer is not happy and is asking for satisfaction.

          • Sean

            I think they could be more open and honest and to the point of what we need to do to help balance our trade and wealth. The whole world economy depends on those guys and so there should be more transparency. I don’t believe we could just get rid of them with a service based economy. It’s unstable. There would be a massive transition of wealth and we would dive into a never ending depression.

          • G Dansky

            Member banks enjoy a 6% profit

          • Sean

            we had a 7.4 trillion dollar trade deficit from 1985-2007

          • Christine

            Sean, Sean, Sean!

            The Federal Reserve is a private corporation, a banking cartel. It is not a governmetn agency.

            Secret Meeting On Jekyll Island: The Creature From Jekyll Island

            Banks make money. They have to (1) in order to pay their employees (2) on interest from the loans they make (3) to grow

          • Sean

            It’s a quasi government agency. the board of governors are elected by the president.

        • Nate Y

          I respond to your posts because you continually spout nonsense, as I have already explained. You haven’t proven anything on this site other than your complete lack of economic understanding, astoundingly poor reading comprehension skills, unapologetic abuse of language, and generally crude disposition. Yes, it is no secret I (and many others) would like to see you gone from this site. I don’t understand why you apparently enjoy causing mischief for no good reason. You constantly post on a site where essentially no one agrees with what you say. You say your aim is to educate people but people here know the arguments and ideas to which you subscribe and reject them. You are not going to change any minds here.

          Again, why don’t you head over to LaRouche’s site(s)? You will find yourself in like-minded company. You can discuss the “American System”, various protectionist measures, and which philosopher kings should rule the non-political class. Careful though, they’re not fans of Bernanke, Geithner, Obama and Co. so you may run into some friction. But not nearly as much as you encounter here. Happy trails.

          • sean

            I have no economic sense? Coming from a guy who thinks that money is not credit. You are seriously a joke. Good riddance.

          • G Dansky

            Sound money cannot be debt.

            Credit is debt.
            Debt is not money.

          • G Dansky

            During the Crusades in Europe, precious goods would be entrusted to the Roman Catholic Church’s Knights Templar, who effectively created a system of modern credit accounts. Over time this system grew into the credit money that we know today, where banks create money by approving loans.

          • Sean

            Debt is money.. If I borrowed 100 dollars from my friend, I would consider that 100 dollars money.

            I agree, “Credit Money,” is not the same as sound money but it is money. It is used as a means of exchange.

          • G Dansky

            Now you have to go earn that $100 plus interest.

            A monetary system based on this idea is doomed to perpetual debt.
            If the money originates as debt it becomes impossible to be debt free.

            A Daisychain of Debt

          • Sean

            Well I don’t borrow money. I work for money. My boss borrows money and pays back interest and still profits.. There is no burden of debt; only on those who put themselves in it.

          • G Dansky

            His customers pay the freight as added cost to his product.
            Good to see that you live debt free. Don’t you recommend that?

            The statistics do not bear out your premise of ‘no burden of debt’.

          • Sean

            The burden of debt is placed on the united states as a whole because we bought so many goods from other countries. You can blame government policy for that.

        • Nate Y

          As has been said, “he who argues with a fool is a greater fool”. Best for me to stop. I won’t attempt to debate in a civil manner with you anymore. I’ll leave it to others to counter your nonsense. But I’ll also partake in some ever so enjoyable ridicule from time to time.

  • Andrew

    Wow. Cnn was respectful to Ron Paul. No stupid questions and no pointless arguments. Is this real or am I dreaming?

    • Antony

      Ron Paul speaks the TRUTH everytime he goes on TV and thats no Dream! Its also no Dream that millions of people are waking up to Ron Pauls message. Times are changing and now days if any media agency, individual or group disrespects Ron Paul they loose credibilty themselves and create backlash from the public.
      Ron Paul’s predictions and concerns have either come true by now or become so obvious its impossible for the common person to ignore or forget.
      My only hope is that Ron Paul at 73 years old can stick around long enough to see his Dream through to Free America.

  • Gavin Veasey

    Ron Paul hits him hard again!