Ron Paul: Change the Philosophy of Government

Ron Paul appeared on The Mangru Report and talked about the financial crisis, the Financial Reform Bill, Glass-Steagall Act, a potential VAT tax, term limits, and… his dream of becoming a singer!

Show: The Mangru Report
Original Air Date: 05/22/2010
Date of Interview: 05/13/2010

Rush Transcript

Dan Mangru: Now joining us for another Mangru one on one from Washington DC is former 2008 presidential candidate and current Republican US congressman from Texas, Dr. Ron Paul. Dr. Paul, glad to have you on the show today.

Ron Paul: Good, thank you. Good to be with you.

Dan Mangru: White House budget director Peter Orszag recently stated that the US is in no imminent danger of a Greece-like crisis. However, not everyone shares that opinion. What’s your take on this situation?

Ron Paul: I don’t think it’s going to be next week or next month, but we’re destined to reach that point someday if we continue to do what we’re doing. The only reason we’re not there already is because of perceptions. We are a wealthy country, we still have more wealth than any other country, and also it is perceived that our dollar is strong compared to other currencies. So therefore there’s a lot of trust placed in us. Currency and the system can be trusted not only because of economic wealth but also of military power. So there are subjective elements involved. But we have embarked on too much spending and we are at a point now where our debt is so great, we can’t pay for it. And when you get to this point, debt has to be liquidated, and that’s what the market is fighting. The market says “Liquidate the debt, get rid of mal-investment.” The politicians always say “No, patch it up, keep it going, keep inflating, keep the bubbles going.” Eventually, we will meet the same fate as the Greeks have, and then it will be trouble. It might not work it’s way out just as it had in Greece, because somebody’s going to come to the rescue of Greece, that’s going to be papered over. But when it hits us, there’s nobody to come to paper it over. And there are signs already that inflation is raising its ugly head and in truth, if you measure our dollar in terms of gold, the dollar is getting weaker every day.

Dan Mangru: Well, since the Goldman-Sachs SEC lawsuit, the financial reform bill has been getting a lot of attention. Debt problems such as subprime, deficit spending, and easy money Fed policies are not even mentioned in the bill. Could there ever be financial reform without addressing these issues?

Ron Paul: Absolutely not. It can’t be, because what they’re doing is they’re patching up a frail financial system by doing more of the same. We got into the trouble because we had too much spending and too much debt, too much regulation, and too much printing money. And once we hit the trouble a couple of years ago, what we did was we increased all of those things and it just delays the inevitable. It’s like giving drugs to a drug addict. Yes, the addict feels a little bit better, but eventually the patient dies if you don’t get them off the drugs.

Dan Mangru: Now some experts point to the repeal the Glass-Steagal act, which separated banking from stock trading and is one of the precursors of the bank crisis of 2008, where banks were allowed to take excessive risks. Would you be in favor of bringing back this regulation?

Ron Paul: You know it’s interesting, I voted on the Glass-Steagal change and I voted against it. The free market though would not have a Glass-Steagal. Banks could do what they want and they have to suffer the consequence. The reason I voted against it, that bill did have some bad parts to it, but one of the reasons I argued against it, repealing it, it was that it was going to put a greater burden on the banks and the taxpayer was at risk, at greater risk through the FDIC and other insurance programs of the government. So I saw that as a greater burden on the taxpayer and voted against it. But I’m for the free market and free market banking, therefore you would have no rules against banks being involved in commercial and investment banking.

Dan Mangru: It’s no secret that you’re against any type of new tax, and recently the Obama administration has been floating out the idea of implementing a VAT tax. Would you support a VAT tax if it were accompanied let’s say by a elimination of the corporate tax or a personal income tax removal as a more efficient means of taxation?

Ron Paul: Well, there’s a slight possibility if it was very very clean and you absolutely prohibited an income tax or corporate tax from existing, if you had only a value added tax or a sales tax to replace it, you had certainty that’s what would happen, yes, I’d be pretty tempted to go along with it. I had not gone on any bills like that, whether it’s so-called fair tax or a VAT tax because inevitably they always need more money here. And just the whole idea that, let’s say we come up with a VAT tax. Oh, we’re only going to make it one percent. It’s not going to be a great burden, it’s going to take care of all our problems. I would be absolutely opposed to it, because that of course is the way the income tax started. One percent tax, and before you know it, look at the tax code that we have now. So unless the people are sincere about cutting back, you can’t really revamp the tax code. The tax code and the burden of taxation is a secondary consequence to the attitude of the American people they have for what they want their government to do. As long as the American people think that we have to police the world and have this world empire and that we have to take care of people from cradle to grave, no tax system will work. You have to change the philosophy of government. Then you can do away with the income tax and not replace it with anything just as we had before 1930.

Dan Mangru: Now for some time the US has tried to label China as a currency manipulator and has publicly pressured China to revalue their currency. If you were in charge, what would your approach be to this?

Ron Paul: Just totally ignore them. I mean, we manipulate our currency all the time. I mean, we work real hard at weakening our currency. It’s interesting that we have a weak currency. To me, that is a problem and we’re demanding that we need an even weaker policy against the Chinese Yuan.

Dan Mangru: Now, with the Tea Party gaining movement here in the United States, there’s a growing amount of Americans that feel that once you’re elected to government office, you should do your job and then leave as opposed to being in the office for life, as many modern day politicians tend to do. Do you support that stance and and would you ever call it a day in Congress after your 20 plus years of service?

Ron Paul: I don’t think ultimately term limits will solve the problem. I think the only thing that solves the problem is the philosophy of government and what the attitude is of the people and what they think the world government ought to be. Because terms limits would be fine if you knew the people that were coming in had new ideas and different ideas and want to change things. That is not the answer but if the vote came up again, I’d probably still support term limits because it would be a token help but not a solution.

Dan Mangru: A final question. Congressman Paul, you’ve dedicated your life to medicine, finance, and government, yet there’s still many talents you possess that a lot of people just don’t know about. For instance, you were track and field champion growing up. If you had to choose a different career path, what do you think you’d be?

Ron Paul: Well, if my knees were to have held up, maybe I could have made it a little further in sports because I love sports, I love track, I love baseball, and I love football. When I was in high school and in college, I was large for my age, especially in high school. So I think a career in athletics would have been just great. But if I had my real dreams of doing something different that getting into politics, I would come back as a singer. But I have no chance of doing that in this lifetime, so I’ll have to just dream about that.

Dan Mangru: Ron Paul, coming soon to American Idol?

Ron Paul: Hardly.

Dan Mangru: Ron Paul, former 2008 presidential candidate and current US Congressman from Texas Congressman Paul, thank you very much for coming on the show today.

Ron Paul: You’re welcome.


  • The End will come when the value of our Gold will cancel out the national debt, and the states will issue their own coinage.

    THE Gold Standard cannot be repealed!
    It is the coin of the realm:

    After barter came Gold which was not easy to use in the market place, so the GOLDSMITHS would call-in the gold and issue DEPOSITORY RECEIPTS.
    When the goldsmiths saw that most of the receipts stayed in the market place they reasoned that they could issue more receipts than were BACKED by the bullion in the vault.
    This was the beginning of Inflation.

    Than came (much later) The Federal Reserve that did away with Bullion altogether, and just issued the Worthless PAPER that we laughing call MONEY.
    The CFR became the promotional arm of the Ruling Elite in the United States of America. Most influential politicians, academics and media personalities are members, and it uses its influence to infiltrate the New World Order into American life. Its’ “experts” write scholarly pieces to be used in decision making, the academics expound on the wisdom of a united world, and the media members disseminate the message.

  • Jim Scott

    We should have learned long, long ago that when you put power and wealth in the hands of a few, who are unregulated and have little or no oversight, they will CHEAT! It’s human nature folks and it’s just that Damn simple. An unregulated free market in this day and time will NOT work. There’s too many crooks now. When are Republicans ever going to learn that? Perhaps it dosn’t matter to them because after all, when the economy tanks, it’s the wealthy (who are mostly Republicans) that escape catastrophic results. Plus, they still hold on to the old fallacy that tax breaks for the wealthy will result in jobs for the poor and middle class. While that MAY have once been true, it no longer is. Now, these same wealthy investors are investing their capital overseas and creating jobs there rather in the U.S. The rich are creating a new nation overseas to manufacture their goods by slave labor and no benefits to enrich their CEO’s and Stockholders and robbing americans of jobs. Until this is reigned in, we will have no new jobs in America. We need to let our government know that we will not stand for this any longer or none of us will have jobs.

  • skip to main | skip to sidebar Poetryfortherevolution
    Prophet and Poet

    Saturday, December 19, 2009
    If Satan drives out Satan?

    “Every kingdom divided against itself
    will be laid waste … … … and if Satan
    drives out Satan, he is divided against
    himself; how, then, will his kingdom stand?”
    ~Matthew 12: 25-26.

  • leo corion

    The Electoral College was intended by our Founding Fathers to preserve the ancient Precedent established by the Israelites on the Plains of Encampment
    when Levi was in the Midst: also when the thirteen Chieftains of the lost tribes who had settled in Scandinavia held a TING to elect their King; likewise when the Pope is chosen: and this is the reason that when George Washington was likewise elected he was given the title of ~Mr. Precedent.

    [With ambiguous placement, a modifier is confusing to a reader because it can refer to two or more words in a sentence.] ~(c) 1999 Prentice-Hall, Inc.

    “The Electors…one of whom, at least, shall not be an inhabitant of the same state with themselves…
    . But in choosing the President, the votes shall be taken by states, the representation from each state having one vote; a quorum for this purpose shall consist of a member or members from two-thirds of the states and a majority of all the states shall be necessary to a choice.” ~Amendment XII.

  • Looking calm and cool as always. Very nice vid.

  • fakeplasticme

    @raughn3 He doesn’t advocate anarchy. He agrees there should be rules…but only rules that protect individual freedoms. Therefore he believes in contract enforcement through the courts, i.e. if a big bank or corporation infringes on you or your property you would have legal recourse through gov’t-run courts. Derivatives, CDSs…these are creations that can just as easily take a bank down as make one rich. In a free market you’d have to invest very carefully, and do your homework.

  • LibertyTheOnlyTruth

    @raughn3, WE HAVEN’T HAD A REAL FREE MARKET SINCE 1913, when the FED was created.

  • LibertyTheOnlyTruth

    @rctube1958, it’s amazing that you still have to explain such a simple concept to some people. It’s like we are a country of 10 year olds.

    Thank you for speaking Truth.


  • LibertyTheOnlyTruth

    We love your Dr. Paul, you are the best thing that’s happened to America since Thomas Jefferson.

  • rctube1958

    @raughn3 Free market does not mean no rules. There have been rules in place throughout this financial crisis. The problem is that the rules are not market rules. They’re political rules.

  • VisionsOfTheNobody

    Ron Paul… His words too good to make him a singer?

  • raughn3

    I like some of Ron Paul’s policies but this free market ideology is bullshit. How can there never be rules and regulations on wall street? I mean, he never talks about derivatives and credit default swaps on wall street, never talks about the spill in the gulf of mexico and never talks about the fact Corporations need to be regulated or else they’ll run a muck and do things to hurt the taxpayers and the environment.

  • archaenadek

    government is only good for 4 things, lying, stealing, kidnapping, murdering
    thats all its good for

  • DoNotuseEbid


  • pSychOAtDawn

    @DEFYtheTHOUGHTPOLICE You should read books in defense of capitalism to get the whole story. Read Ayn Rand’s “Capitalism: the Unknown Ideal” and “The History of Money and Banking in the U.S.” by Murray N. Rothbard. Government does NOT like capitalism.

  • ArmorOfChrist777

    Ron Paul for the long haul!


    Doesn’t Laissez-faire Capitalism lead unsafe work conditions, slave wages, and Child Labor?

    Without Government control, what have the corporations done in the past? What do they do around the globe, today?

  • Xasew

    One of his better interviews. Good stuff.

  • pretorious700

    I hope Dr. Paul does not succumb to hero worship. His strength is in his ideals, not his personality.

  • katsfanman