Ron Paul: Stop the Bailout of Foreign Banks!

Date: 05/12/2010


David Asman: Republican Congressman from Texas, Dr. Ron Paul. So Congressman, why do you think we’re bailing out the banks that bet on Greek debt?

Ron Paul: Well, I think the banking system is international. I think we do have a global economy, and even though they may be foreign banks, I think they’re all interrelated. They may analyze and say “Well, if we let it go, it will affect more countries. We have to stop it.” Just like all the argument was stopping meltdown we had here a couple of years ago. To me, it is a real shame that’s been happening, but I think the burden is placed on our dollar, and we’re going to see continued depreciation of our dollar. To me, the only measurement of the dollar value is against gold, and we know that the dollar is being deeply depreciated constantly.

David Asman: Now as bad as it is, US taxpayer dollars going to pay off banks that bet on Greek debt… There is a possibility that some of our tax dollars will go to paying off those who hedged their bets and voted with their money on credit default swaps, betting that in fact Greece will fail. Is there any chance that any of our money will go to pay off credit default swaps?

Ron Paul: I would think so, because it’s going to be very hard to follow all this. I was hopeful that we get a true audit of the Fed and we can trace all this and find out what goes on, but no, I think the expansion of credit by our Federal Reserve will be able to bail out anybody and everybody they think necessary to bail out. So, our money will not be well regulated except for those special interests.

David Asman: Now, here’s a question. By the way, we’ve contacted AIG about this question, and we’ll tell you about their response in a moment. Is there any possibility that AIG, which of course issued credit default swaps on those bad subprime debts, and that’s what taxpayers had to bail out, may have been issuing CDSs, credit default swaps on Greek debt?

Ron Paul: I would think so. I don’t know in detail, I don’t have the information, but I don’t know why they wouldn’t be. Because they knew it was a crap game and they thought they could make it, make money on it. They would go and do it. It wasn’t like Goldman Sachs was ignorant of it. In a way, you would say “If Goldman Sachs was just shorting the market, that was one thing.” But when you’re on both sides of the argument and both sides of the trade, and with these countries in trouble, just think of how many people deal in this. I mean, George Soros, not that he was dealing in this particular instrument, but he knows about international currencies. So there’s a lot of people who do this and if they know they’re coming into trouble, they can anticipate it, and they can get very much involved.

David Asman: We have heard that AIG is denying that they did issue any credit default swaps on Greek debt. However, since it’s an essentially US government owned entity right now – we’ve taken over most of the obligations, if not all of AIG – do you think that their books should be open so we could see for sure whether or not any of our money was going to pay off their CDSs on Greek debt?

Ron Paul: Absolutely. Once the taxpayer is stuck with some of these bad companies and bad debt, we have an obligation to open the books. Not just a right to open the books, but we need to find out. You know, we do live in an age of transparency now, at least the people want transparency. We don’t want secrecy of government.

David Asman: If we have the right as taxpayers to know what AIG was doing, whether they were selling any CDSs on Greek debt, we should know more about these swap lines between the Fed and European governments. Shouldn’t we know whether taxpayers are getting stuck with euros that are going to go down in value?

Ron Paul: I think that’s where the real damage is right now. The swap lines and the Fed is directly involved in that. Yes, we should know and it’s just amazing to me that the system hangs together so long. It doesn’t deserve to be, but so far they keep patching it up, patching it up. To me, that’s just building a bigger bubble. To me, I think this participates in the American US bond bubble. Because people still are buying these things. Who would want to invest in one of these bonds for 10 years or 20 years? But they keep buying them.

David Asman: I agree with you one hundred percent. Final question though sir, I got to ask. As we go into November, if there was a sea change in November, will there be any way to open the books of the Fed with this new Congress? To open the books of AIG? To stop this bailing out of foreign socialists?

Ron Paul: Let’s hope so, but I’ve learned to be skeptical. Right now there’s talk about if the Republican would regain… but they don’t always fall through. I will do my very best to hold them to arguing and promoting transparency, but we’ll have to wait and see. Taxpayers and the voters should hold us accountable to demand more transparency.

David Asman: All right. And don’t forget the Blue Dogs. Some Blue Dog Democrats are more reliable than some so called conservative Republicans.

Ron Paul: Yes. There you go.

David Asman: Good to see you. Ron Paul, from the halls of Congress. Thank you very much for being here.


  • Hey guys, You should def. check the new [url=]usa poker[/url] sites here. Enjoy the games!

  • Martin

    Audit the Federal Reserve?

    Someone recently made a comment on the internet that had never occured to me. We all know that the Federal Reserve is not federal it is a private bank. We also know that it charges taxpayers interest on money that it causes to be created. Then why doesn’t the Federal Reserve file a tax return declaring its profit and losses? Let the IRS take them to court for failure to file tax returns over almost 100 years and audit them.

  • fred the protectionist

    “Truck Acts is the name given to legislation that outlaws truck systems, which are also known as “company store” systems, or debt bondage. Such laws date back in Britain to the 15th century but have also been implemented in other countries.”

    We don’t need no stinking regulation, right neo-Feudalists?

  • fred the protectionist


    Gimme some censorship, censorship is good.

    • fred the protectionist


      My comment is not awaiting moderation by default?

      • Dfens

        Libertarians are all about “freedom”. You are perfectly free to agree with them at all times. They’re also all about peace. Look at how peaceful Greece has become since they dropped all their tariffs and control of their own money and became part of the European Union. This is exactly the same kind of peace Ronny and Randy want for the US:

        Sarkozy demanded a “commitment from everyone to suppport Greece…or France would reconsider its position in the euro,” according to one source cited by El Pais.

        Another source present at the meeting between Zapatero and his party members and cited by the paper said: “Sarkozy ended up banging his fist on the table and threatening to leave the euro…This forced Angela Merkel to give in and reach an agreement.”

        The European Union and International Monetary Fund agreed a 110 billion euro rescue plan for Greece last week. But Germany, which must shoulder a good deal of the burden, had proven reluctant to commit itself to a plan. – Telegraph

        Doesn’t that sound peaceful? What are they afraid of? Are they afraid Greece might pull out of the EU and show the world that they can exist just fine as a soveriegn country rather than as a member of the New World Order? That would be a threat to everything the Libertarian globalists have worked so hard for, wouldn’t it?

        • fred the protectionist

          Actually that was just a message for the moderators who could only read the “Comments awaiting moderation”, for the last week I haven’t been able to post.

          I’m serious, I believe in censorship. After see’ing a episode of Sarah Silverman licking the as of a dog, watching that Jackass show on MTV, even pornography is tasteless these days; our culture is degrading and censorship is the solution.

          Has anyone seen the crap on the “syfy” channel these days? CENSORSHIP YES! “Mansquito”, give me a f’ing break. “Mothman”? “Mongolian Death Worm”? GET OUTAH HERE!

        • DFENS

          Joan don’t mistake him for me. I do like what you said about abortion, Joan.

          Today French PM Sarkozy threatened to withdraw from the EU over this clusterflop. That is so cool, I bet Germany wishes they did it first.

          Dfens, I appreciate from your posts your apparent intelligence, but you have a chip on your shoulder about libertarians and everything else Ron Paul has given us the opportunity to voice our opinions about. Please consider this, its MBA stuff:

          In the 70s, the IMF lent truckloads of US dollars to Argentina. Then when Argentina’s economy continued to decline, they defaulted on their IMF loan commitment. Corporations moved in to “acquire” their assets of greatest value, in exchange or “bailing them out”. The relevance of this is that had Argentina taken their debt in Argentinian fiat currency, they would have been able to print the money to pay the loan and keep up appearances.

          This pattern has repeated itself the world over; you call it globalization, I call it the 3rd reich, part 2. The IMF is predatory, and guess whose holding the leash?

          The exception to this IMF mugging is the USA. Our evil overlords at least had the sense to take all the debt they burdened us with, in order to have learjets, many sex slaves and unlimited mountains of cocaine, in US dollars. So, when the USA could not meet our obligations to the banker syndicate, we just printed more money, shifting the inflation devaluation onto them.

          Ahahahaha, ahahahaha, ahahahaha…

          btw unlike Dfens, I am a Libertarian, and not a phony social Libertarian either. I am a creator of value and wealth. Sleep well.

        • fred the protectionist

          Globalization=Free Trade+Open Borders. Don’t complain about Globalization and then say “Free Trade is great and Immigration made America”.

        • Jim

          What the hell is a libertarian globalist? I think you are mixing apples with oranges.

          The globalists don’t want sovereign states. Greece may or may not be better off, but it should be UP TO GREECE which direction they take, not the EU or UN.

          So many people think that choosing between brand A and brand B is a choice, even though they are both made by the same company. That is not a choice.

      • Joan

        Dfens, you are correct what you said about Germany in another post, with regards to Greece. You mentioned that Germany is much more productive than Greece, and now that it’s the European Union, Greece is having a hard time competing with Germany. You are right. I saw on the news yesterday Germany is mad at heck that they have to pay to bail Greece out. They said they are getting screwed for being productive.

  • Citizen

    FED Cyber Cash Building the next Bubble using American Tax Payer Dollars.

    This is simply massive Taxation by dilution WITHOUT representation… sound familiar?

    NO ACCOUNTABILITY and no recourse to do anything about it.

    Our First Amendment states that we have…
    “…the right to partition the government for redress of grievences”

    DO WE?????

  • Matt Gonzalez would be a great running mate for Dr. Paul in 2012 and he means business no BS! I love Chicago, but not the corrupt politics of it.

    • Rick Ross

      You seem convinced. Please sell it to me.

  • Rick Ross

    Whats there to kid about? Matt Gonzalez as a strong VP candidate. You must be joking. Even crazy Hillary or the Gropenfuhrer could wipe the floor with him, and definitely not because they are any better. California politics is just as corrupt as Chicago, just different players.

  • F M

    The final stage of evolution in their monetary system would witness the universal embrace of electronic money, the brightest jewel of their evil monetary crown, which would totally replace today’s fraudulent paper currencies. Indeed this final stage has already commenced, and all that the international monetary bandits now need is a world crisis (such as a nuclear
    attack on Iran which has not as yet occurred but which is expected at any time) that would result in a total collapse of the US dollar and a consequent mass stampede away from paper
    Already the impending collapse of the US dollar is reflected in the rising price of gold, now close to the record of US$850 an ounce set in January 1980. The world can expect to see the price of gold escalate to US$3000 or more per ounce.
    The same thing would happen to the price of oil. Perhaps the psychological shock of the collapse of the US dollar would produce the stampede through which electronic money would effortlessly replace paper money as the new cashless money system of the world.
    Eventually these countries would be trapped with debts they could never repay, and would thus be at the mercy of those whose suspiciously large loans to them were meant to deliver precisely such control over them. (See John Perkins, ‘Confessions of an Economic Hit-Man’).

    They have a grand design to so financially enslave the masses as to permit them to impose their dictatorship over the whole world. Their dictatorship would, in turn, pave the way for the Euro-Jewish State of Israel to become the ruling state in the world.

    1933, The US Government enacted legislation at that time prohibiting American residents from keeping gold coins, bullion or gold certificates in their possession. Gold coins were demonetized, and were no longer permitted as legal tender. They could not be used as money. If anyone was caught with such gold after a certain date, he could be fined $10,000 and/or be imprisoned for
    six months. In exchange for the gold coins and bullion, the Federal Reserve Bank, which is a private bank, offered paper currency (i.e., US dollars) with an assigned numerical value of $20 for every one ounce of gold. Most Americans rushed to exchange their gold for paper currency, but those who were aware of the rip off that was about to take place bought gold with their paper currency and then shipped the gold away to Swiss banks.

    It is significant that the British government also demonetized gold coins in the same year as the US. They did so through the simple expedient of suspending the redeemability of the sterling paper pound into gold.
    After all the gold in USA had been exchanged for paper currency, the US Government then proceeded in January 1934 to arbitrarily devalue the US paper dollar by 41% and to then rescind the law of prohibition concerning gold that was previously enacted. The American people rushed back to exchange their paper currency for gold at the new exchange value of $35 per ounce of gold. In the process, they were robbed of 41% of their wealth. The reader can now easily recognize the legalized theft that takes place when paper
    currency is devalued.
    In other words, the Great Depression was artificially contrived in order to justify the imposition of an international monetary system that would bring order to a chaotic world of money.

    In April 2002, Ron Paul sent the following letter to both the US Treasury Department and the Federal Reserve Bank (which, incidentally, is a privately owned bank) asking why the IMF prohibits gold-backed currencies for its member states:

    Dear Sirs:

    I am writing regarding Article 4, Section 2b of the
    International Monetary Fund (IMF)’s Articles of Agreement. As
    you may be aware, this language prohibits countries who are
    members of the IMF from linking their currency to gold. Thus,
    the IMF is forbidding countries suffering from an erratic
    monetary policy from adopting the most effective means of
    stabilizing their currency. This policy could delay a country’s
    recovery from an economic crisis and retard economic growth,
    thus furthering economic and political instability.
    I would greatly appreciate an explanation from both the
    Treasury and the Federal Reserve of the reasons the United
    States has continued to acquiesce in this misguided policy.
    Please contact Mr. Norman Singleton, my legislative director, if
    you require any further information regarding this request.
    Thank you for your cooperation in this matter.
    Ron Paul
    U.S. House of Representatives

    • fred the protectionist

      What’s wrong with electronic currency? How can someone order something on the internet using gold coins?

      Man! Why don’t we just return to the horse and buggy whip, or horse buggy and whip, or buggy and horse whip, I forgot how that one goes.

  • Hairy Ape

    How do we stop this irresponsible losing hand gambling activity?

    When the electricity and plumbing fails, these FOPs will not be able to restore civilization. So why are they being rewarded to bring it down? Propping up failed states only delays the inevitable, and wasting money on it makes us that much less prepared when it happens. The only people who won’t be affected will be the pnes living in caves already…

  • dave from chicago

    I’m a Democrat and I’ve just barely discovered who exactly Congressman Paul is and I agree with the direction he wants to take this country.

    I hope he would run with a strong running mate in 2012, perhaps with Matt Gonzalez?

    • Rick Ross

      You’re kidding, right?

      • Machine

        What’s there to kid about???

      • jim

        I think Ron’s best running mate would be Judge Napolitano for a couple of reasons. First and most importantly they practically agree on just about everything. Secondly, Dr. Paul didn’t get elected last time because he was never given any airtime. Yes he has a sizably larger audience this time. But if the powers that be see him as a serious threat during election time they will try to shut him down again. Of course they wouldn’t be as successful as last time. But Dr. Paul’s message is so appealing that the more people that hear it the better. Having the Judge campaigning for him on air would be huge. Those of us that understand the Dr. need no encouragment. But that continual airtime would garner him new listeners all the time. The country will reach a watershed moment no matter what, either by necessity or common sense. More than likely it will come down to necessity. But the closer in time people come to understand Dr. Paul’s philosophy in relation to the collapse the more devastation can be prevented and the sooner we can start down the road to prosperity. His message is the right one so it’s all about winning hearts and minds.

        • Allen Fenster

          So far Napolitano has made a great entrance, but I have yet to see substance following up on it to demonstrate that he’s the right tool for this job. I like him, I hope he can carry through and actually do something.

          I’m an automotive engineer, my idea of making something work is pretty rigorous. IMO every government would benefit from a few unflinching hardasses like myself, but they are all soft.

      • Joan

        I don’t know about Judge Napolitano. He’s on Fox News, Fox never has Ron Paul on. Beck is on a big ego trip now, he doesn’t want a Libertarian politician taking away from him selling books and taking any control from the Tea Party people away from him. Otherwise, why else is Beck not having the Libertarian presidential candidate on his how often when Beck is preaching Libertarianism? What’s the deal? Also, Hannity is conservative Republican, he believes in big military intervention, so he makes fun of Ron Paul. Napolitano works for Fox News, so I don’t see it.

        I think you always have to consider that the Dems ran the first woman presidential candidate and the first African-American candidate. I agree with you that the country will be imploding by the next presidential race, maybe by then it won’t be as important if the candidate is a woman or minority, but it’s something to consider. I think Ron Paul should pick either a Libertarian woman or someone like Bobby Jindal. They may not agree about everything, but Jindal is smart, Louisiana is one of the few states that has a balanced budget, he’s not afraid to make cuts in social programs, Louisiana has had big job growth even with Katrina and with the recession. He is young, he’s smart, he’s East Indian, I think he would make a great VP candidate.

        • DFENS

          Beck is a nutjob. Joan, google the Indian Jindal dynasty to understand what is wrong with that idea. Thanks for telling me Napolitano is on the Faux News payroll; he’s sold out.

          As of today 5 global corporations control all the mainstream media; Faux is one.