Show: Freedom Watch
Judge Andrew Napolitano: Hello and welcome to Freedom Watch, your daily dose of raw liberty streaming online at FoxNews.com. I’m your host, Judge Andrew Napolitano here defending freedom, depending your natural rights and defending your right to have a government that stays within the confines of the Constitution.
You’ve all heard me state repeatedly that everything the government runs is broke. Social Security is broke. Medicare is broke. Medicaid is broke. Amtrak is broke. The post office is broke. Now, the same bureaucrats that have run the government into the ground want to run healthcare and they also want us to believe that they can fix the economy and repair the damage done to the dollar by recklessly borrowing and ruthlessly printing money and by spending into the trillions. They forget that the government consumes wealth and only the free market can produce wealth. In an upcoming article in Forbes Magazine, Congressman Ron Paul says “be prepared for the worst.” The large scale government intervention in the economy is going to end badly.
It’s now my pleasure to introduce one of America’s great defenders of freedom and liberty today, Congressman Ron Paul joins us from our nation’s capital. He is the author of the New York Times’ bestseller, one of his several bestsellers, “End the Fed”. Congressman Paul, welcome back to Freedom Watch.
Ron Paul: Thank you, Judge. It’s good to be with you.
Judge Andrew Napolitano: Why should we expect the worst and what do you warn in this article that we should all expect?
Ron Paul: Well, as you said in your opening statement what has the government done right, and if you were going to turn medical care over to the government, their test was how well they could distribute vaccine for H1N1 and the question of whether it was necessary or not, all that exists. But they did that so poorly and intervene so viciously in our rights and that sent a message. I think that is part of the problem going throughout the society and throughout the markets right now. It’s that the government is just totally inept and the pretense is that the stimulus is working. You hear the liberal writers saying, “Oh, the stimulus has worked. All we need is more of it and it would have really worked.” Well, the trouble is it didn’t work. They took billions and billions, if not trillions of dollars away from the people and gave it to the government and the government spent it, which means they misallocated credit and resources and they make things worse, and so we haven’t changed anything.
This idea that the GDP went up, well, you know, they measure GDP by government spending as well. That’s included in it, so what is this? We either borrow the money from the Chinese or we print the money, we spend the money. It goes in and you buy up clunkers or buy up houses and say that, “Oh, the GDP went up.” Well, it has to be temporary and that’s been my argument. That’s my argument in the article, it’s that if you see economic growth returning, you’re kidding yourself because all the bad policies are in place and unfortunately from the people I deal with here in Washington, there aren’t very many free market economists or believe in the free market. They’ve all been trained and indoctrinated by Keynesian economics and they really don’t believe in freedom and sound money in the sense that I do.
Judge Andrew Napolitano: You point out in your article, Congressman Paul, that we are seeing some little snippets of growth here and there today. You called them some green shoots of growth, just as we saw in 1930 when Hoover and later FDR, of course, were trying to micromanage the economy from Washington D.C. Why do we see these snippets of growth and why should we reject the government’s claims that they are a sign of better things to come?
Ron Paul: Well, I think it is part of human nature because nothing goes down until the very end stages with a currency. The end stage is a currency does fall off a cliff and it goes down, but if you look at the dollar, the dollar has been going down for many, many decades. So all markets go up and down and have blips, but you have to look at trends. So because the market just really was bad a year ago, the fact that the, you know, a lot of money is pumped in and people are trying to stimulate things, even when they are artificial, it will look like there is some growth in the economy, but I think that’s all a delusion. I think it’s a mistake and the worse thing we could do is assume that what we have done here in Washington in the last year has been helpful. That is very, very dangerous because it has all been very damaging.t
Judge Andrew Napolitano: You predict in your article a drop in growth worse than anything we have seen in the past two years. What are you talking about?
Ron Paul: I think the whole economy is going to be much weaker. We’ve had a financial collapse. The financial system was built on a house of cards, which was the fiat dollar standard and it was international because it was the reserve standard, But we haven’t had a dollar crisis. As a matter of fact, the dollar is benefiting to a degree right now because there is still a lot of dollars out there and people don’t even know where to park it, so they park it in Treasury bills, which helps the Fed and it drives down the interest. It helps the government, but that is all temporary.
When the dollar collapses, what happens is the people will recognize what you said earlier on, that everything the government touches is bankrupt and when that comes about… already we saw an early sign of this, the Social Security beneficiaries didn’t get any cost of living increase this year as a pretense that, “Oh, you know, there really wasn’t any inflation and we’re going to straighten up our house.” But eventually everything the government touches and passes out, the dollar will lose its value, so the more dollars they print, the more value it loses.
So far, they have been lucky enough, but they printed dollars and the people have taken it like Goldman Sachs and others keep making more and more. But eventually, this dollar is going to quit working and then everybody is going to know what poverty is all about.
Judge Andrew Napolitano: You and I have talked about this off air, but we keep hearing rumors and snippets in references in the blogs to it. Are you considering running for the nomination of a party for president in 2012?
Ron Paul: Not seriously, but you know, I listen to them and that’s a long way off. I think more about what the dollar is doing today and what we’re going to do with healthcare and a few other things, so my plans aren’t that far out. So no, I’m not giving it serious consideration.
Judge Andrew Napolitano: But you must know that there are millions out there that would ardently desire this. We did Freedom Watch last week before a live student audience at Drexel University in Philadelphia, in the same room where then Senator McCain and then Senator Obama debated in one of the debates a year ago. Everybody was asking me and these are students, “Is Ron Paul going to run for president?”
Ron Paul: Well, Judge, I think it might be your turn this time around. So you and I have to have another private conversation on this.
Judge Andrew Napolitano: Congressman Paul, it’s always a pleasure. Thanks for joining us on Freedom Watch.
Ron Paul: Thank you.