Greece is just the beginning. The crisis will spread across Europe and finally to the United States. The US will be the last to fall because we have the dollar, and people still believe in the dollar.
Channel: Fox News
Megyn Kelly: Joining me now is someone who has thoughts about this and warned about it, and that’s Texas Congressman Ron Paul. Congressman, thanks so much for being back with us. You’ve had your eye on Greece for a while now. This probably comes as no surprise to you.
Ron Paul: No, not at all. And I think this is just the opening of a much more serious crisis than the financial crisis. I think what we’re seeing is a shift from the financial crisis, the financial institutions, to a currency crisis. Even though the dollar is up sharply today and has been up sharply last week, I see this as an attack on the dollar. Because in terms of gold, the dollar has been rampantly devalued and this means that gold is acting as money. They’re giving up on the paper currencies and I think this country and the world is in for big trouble because this is a currency crisis and it’s much worse that having a financial crisis.
Megyn Kelly: You know they say that look, what’s happening in Greece is one thing, but if this expands to Europe and they’re saying Portugal could be next, the German chancellor says she’s very worried, and that the European [Union] has to bail out Greece because she’s worried about it spreading to Europe, and there are other countries that could follow, Spain and others. If this becomes a European problem, it very much becomes an American problem as well, does it not?
Ron Paul: There’s no doubt about it. It is a world problem and we’re going to be the last one to fall because we have the dollar and people still think that the dollar will save everybody. The dollar is going to have to bail out California and so many other problems that we have here. But that’s going to make the whole world vulnerable. It’s a debt explosion, it has occurred for 40 years, we’ve known it has been building, we knew it couldn’t last, and we knew it would end first with the financial bubble collapsing, and now we’re in the midst of a currency crisis.
Megyn Kelly: You know, it’s really scary to see what can happen in a society when the overspending comes home to roost. You know, when you see the consequences of years and years of overspending. Obviously people here are very worried about our debt and our deficit. Congressman Paul, could this kind of thing happen here? Could what we’re seeing in Greece and in California happen on a nationwide basis here?
Ron Paul: Absolutely. There’s going to be anger and there’s going to be riots in the streets as well. But this is all a consequence of the fact that why and how the government spends like this. It’s because they don’t have sound money. When we run up deficits, we tax, but never enough. We can’t tax, it would ruin the economy. Then we borrow, and we get away with that for a long time. But we rely on the printing presses from the Federal Reserve to create the money, and that’s where the problem is. This is why we have to look at the Federal Reserve, we have to get an audit of the Federal Reserve, we have to look at the monetary system and the dollar system because you can’t have fake money. This is counterfeit. We’ve been operating like this since 1971. No time in the history of the world has the whole world been on fiat money for so long building up these financial bubbles, distorting the economies and running up all this debt, and it has to be paid for. This is just the beginning.
Megyn Kelly: Do you actually think that the Federal Reserve may be secretly bailing out Greece anyway, because we can’t audit the Federal Reserve, so we don’t know what it’s doing with this money. You think they may be funneling money over there right now?
Ron Paul: Well, they’re capable of doing it, that’s why I demand an audit. But we do know that the IMF has offered them a lot of money, and we’re like 25 percent of the IMF, and that money has to come from us, it has to come from creating new money. But what they do secretly we don’t know. But they’re capable of doing it. And believe me, if push comes to shove, they’re going to use the dollar because people are still trusting the dollar. We still have the big economy. But that just delays the inevitable and it makes the downturn that much worse.
Megyn Kelly: How much of this fall on the Dow do you attribute to Greece?
Ron Paul: Oh, I think a lot. But that’s just the tip of the iceberg. They’re the ones who have been the first ones to fall, but then there’s going to be Portugal, there’s going to be California, then it’s going to be United States government, and it’s going to be all the governments. I mean, they talk about Germany being the powerhouse? You think they have balanced budgets and they’re going to be able to bail out Europe? No! Everyone’s in this together. So Greece is just the beginning because they were probably worse off and it was precipitated. But all the countries and so many of our states are that way and many of our corporations, individuals, it’s still debt that has to be liquidated.
Megyn Kelly: Alright. Well, Congressman Ron Paul, we always appreciate hearing your insights on it. Thank you so much for being here.
Ron Paul: Thank you.