Channel: CBS News
Bob Schieffer: First, let’s go to Capitol Hill where Congressman Ron Paul is standing by. Well, it’s been a big couple of weeks for you, Congressman. Here two, three weeks ago you were chosen by CPAC as their candidate for President, now you won re-election to your congressional seat. I guess a lot of people are wondering, are you going to make another run for the presidency in 2012?
Ron Paul: Well, whenever that’s decided I’m going to tell myself. I have no idea, I don’t have any plans for it. It’s still, as far as I’m concerned, a long way off. Lots of things can happen from day to day so I haven’t made any decision.
Bob Schieffer: Let me just ask you about the situation in Texas. If I’m correct, all of the Republican candidates who were running last night for Congress who had Tea Party candidates, all of the incumbents prevailed. I think there was one runoff, where there is a Tea Party candidate still in the race. All this, you had a Tea Party candidate, all this talk we’ve been hearing about the Tea Party candidates, it didn’t seem to bear much fruit last night.
Ron Paul: Well, I think that the incumbents do have an advantage over any challenger. Yet I don’t think it diminishes the fact that a lot of people are very upset. And they’re upset with Republicans and Democrats. I think the old saying that they can get pretty upset with Congress but they still like their Congressmen because they get to know that individual. But I think it’s going to be hard to root out a lot of incumbents, but there will be more this year than usual.
Bob Schieffer: You had a Tea Party candidate in your primary. I guess I would ask you, how can someone as conservative as you are, unabashedly conservative, how could you get somebody who thought you weren’t conservative enough?
Ron Paul: I think they thought maybe because the environment, that they’re going to throw out all the incumbents and they would just see if they could get free ride, but politics requires a little bit more than that. You have to be organized, you have to have supporters, you have to have campaign, and you do have to have some money to do it. So it’s not as simple as just being upset.
Bob Schieffer: Congressman, I want to ask you about a recent hearing that you took part in. The Financial Services Committee had the Federal Reserve Chairman Ben Bernanke come before them and you asked a question that had to do with had the federal government, if I understand this correctly, funneled money through the Federal Reserve to the Watergate burglars and also to Saddam Hussein. Chairman Bernanke seemed taken back by that question. What basis did you have for asking that question?
Ron Paul: My real purpose was if it’s true, and there’s a lot of people who think it’s true, that it gives you a good reason to audit the Federal Reserve, it was still back to the transparency issue. But recently, Robert Auerbach, who worked for the Fed and worked for Henry Gonzalez, was very much involved in these investigations. And he felt like the Federal Reserve always rolled them and didn’t give them the information that they’ve asked for. But it wasn’t something like it was brand new. If anybody goes to the Internet now, a lot of my supporters did this after that question, and after Bernanke became outraged, this is the “most bizarre thing” he’s ever heard, then all of a sudden you go look at the news, it’s all over the place. It was back in there, it was a discussion. I do remember the discussion but this book, this section about the Fed by Auerbach, really goes into details and shows what was going on at the time and what the Fed actually did to prevent the people from getting this information.
Bob Schieffer: But Congressman, I mean, in all fairness, one can go to the Internet and find anything one wants to find there. There’s no guarantee that it’s true or even bears any resemblance to the truth, some of it. Did you have any basis to believe that the Fed somehow funneled money to the Watergate burglars? I mean, what would be the basis of that?
Ron Paul: Well, they facilitated it. It just goes to show that it’s a very political organization and…
Bob Schieffer: Who facilitated it? And how much?
Ron Paul: Well, I mean if you had a president like Nixon who wanted to cover up and he had to get the money and somebody could do it, why wouldn’t they be able to do this? But it was in the news, it wasn’t like it was some sinister plot or somebody having with a wild conspiracy, it was average news back then. News reports. But really, the individual that has the most credibility on this is Auerbach. He was involved in this discussion and he was involved in going to the Fed to get this information along with Gonzalez and other Fed chairman to try to get transparency of the Fed.
Bob Schieffer: But you’re not saying they found anything?
Ron Paul: No, they’re hiding the information. And this was my whole point with Bernanke. I’m not making an accusation. But isn’t it to our advantage, the Congress, the Federal Reserve, and the people, to allow us to know what’s going on so that you can settle these arguments once and or all? And that was my point, it wasn’t like, oh yes, why did you do this and the Fed this and that? I want the air to be clear.
Bob Schieffer: Don’t you feel, is it any way irresponsible to make an allegation like that?
Ron Paul: No, I think it’s irresponsible to ignore what the Fed does in secrecy. That’s where the irresponsibility is, to allow things if there’s a slightest chance, why don’t we clear the air on this? So I think the irresponsibility falls on the Congress for ignoring the Fed, no oversight, they literally create trillions of dollars, they pass it out through the discount window, they make deals with foreign banks, foreign central banks, and foreign governments?
I mean, this to me is so irresponsible and that’s why we had our financial crisis and that’s why we’re going to have a dollar crisis, is because we’re derelict in our duties. The Congress pays no attention because, and I said this in the hearings, it’s because Congress has a cozy relationship with the Fed. If the Fed didn’t exist, we couldn’t run up these deficits. They would end, because the Fed monetizes that debt. If you couldn’t monetize debt, the Congress would be limited and they would balance the budget.
Bob Schieffer: This would be our last question. What you’re saying is that what the Fed does, it does much of it in secret. You’re not saying that you have any proof that they somehow funneled money to the Watergate burglars or the other allegation you made that they funneled money to Saddam Hussein?
Ron Paul: That’s not, I don’t think that’s a secret. Matter of fact, they explain it that it came out of, the Treasury explained that it came out of a particular fund when they sold oil and what not. But my point is, it wasn’t appropriated by the Congress. No, that is no secret. I think nobody’s going to deny that $5.5 billion dollars went to Saddam Hussein when we were his friends and his buddy and of course this fits my position that it’s why we have such a disgusting foreign policy. Because one time we’re giving money to Saddam Hussein, and we help him and his war against Iran, and the next time we’re fighting Saddam Hussein. One time we’re a friend of Osama Bin Laden, and then the next time we’re his archenemy. The insanity of our foreign policy is connected with our monetary policy and the Federal Reserve facilitates it in several ways.
Bob Schieffer: All right, well thank you very much Congressman.