Ron Paul: Bring the Troops Home, End the Welfare State, Stop Monetizing Debt




Ron Paul reacts to the proposed cuts in spending, a massive overhaul of the tax code and reductions in Social Security benefits aimed to get the massive deficit under control.

Date: 11/10/2010

Transcript

Dylan Ratigan: Joining us now with his first reaction to today’s draft proposal, the fiery deficit hawk himself hailing from Texas, Republican Ron Paul. Dr. Paul, what do you think?

Ron Paul: Well, I’m always hopeful but I’m very doubtful, I don’t think much will come of this. I think they will fight over it. I mean they’re talking about cutting some military spending which I’m all for, a matter of fact, I wrote a letter along with some others to recommend this and they’ve at least addressed the matter, and they talked about bringing a third of our troops that are stationed overseas. But they’re liable to put them into Afghanistan, so I don’t think these are real cuts, I just think they’re dealing with this in an incorrect fashion. It’s not strictly a budgetary problem, it’s a philosophic problem — the philosophy of government.

As long as we’re going to the policeman of the world and as long as we pretend we’re going to run a welfare state from cradle to grave, it’s not going to work. And these figures, how can you rely on these figures — how do they know what the revenue will be? They don’t even know what the employment rate will be in a couple of years. So I’m not all that hopeful, they’re not going to start anything until 2012. They’re talking of a total $200 billion cut by 2015?? I mean, what does that mean?

Last year the national debt went up $1.6 trillion, so I’m skeptical —but I’m for all the cuts that they have there, I don’t think I will vote against that they have suggested.

Dylan Ratigan: If you were to be able to set the North Star, however, for a conversation about not just the deficit, cause the deficit obviously is symptomatic of a philosophical operating system in this country, not just at the Federal Government but on the State Government and all the rest of it, and for that matter financial system a bond market that indulges the politician’s behavior, where would you begin the process of correcting it, if you think this is philosophically misguided?

Ron Paul: Well, I would say that we should have a new foreign policy and bring all our troops home and defend our country and not police the world. I would wean ourselves off of the welfare state. But I think there’s one law that you could pass that would bring both of those issues to a halt, and that is prevent the Fed from monetizing debt, so if Congress spends too much – which they always do – the Fed comes to their rescue and they buy these bonds in order to keep the interest rates low.

But if the Fed wasn’t there, they’re the perpetrators of this, because if the Fed didn’t do that, interest rates would go up – this would hurt the economy, and the members of Congress say “hey, why are interest rates up?” Well, we’re hogging all the capital — and they would have to quit. But that system is so engrained and that would an overwhelming task, not very many people would entertain that thought, so I don’t think they’re on the verge, just changing their philosophy. I think we’re working toward a dollar collapse, and as long as they’re buying our bonds and I think this is going to continue.

But I already see, I think there’s hints that they’re buying our bonds less enthusiastically right now than they did a few months ago.

Dylan Ratigan: And let’s talk about that, so it’s presumed that the dysfunction comes from the ability for politicians to spend money they don’t have and the ability to spend that money is empowered by virtue of the Federal Reserve and the central banking system which allows money printing. If you were to look at the world’s reaction to that at this point, as we see Obama traveling the earth, it is wholesale critical. Basically America is being accused of currency rigging against the world the same way we accuse China of its currency rigging. The commodity prices are at records. That’s a clear indication of people skepticism of the value of currency in general.

The reason cotton is up 100%, corn, gold, oil and the World Bank had floating the idea of tying currencies once again back to gold as opposed to having fixed interest rates which is what the Federal Reserve obviously advocates for — when you look at all of the little pieces, the explosion in commodity prices, the political backlash that, forget China being a currency manipulator, we’re a currency manipulator and then more and more rhetoric that really is aligned with you. Do you have any faith that the financial markets might demand the changes from our government that our politicians are incapable of demanding?

Ron Paul: Eventually, and just think of the different attitude about this $600 billion proposal compared to the 1.7 trillion injection. The attitudes are changing, attitudes are very important. Once they get inflationary expectations where they’re seeing the price inflation on the commodities, pretty soon that is going to be injected into the future, then everything the Fed does to lower interest rates will raise interest rates. Just printing money eventually does the opposite and I’m afraid that’s what we’re moving into.

So that’s why watching some of the interest rates carefully will give us an indication and what the foreigners are doing and what China is doing. But to just jump on China and say “they’re all at fault” without us looking at our deficits and the way we manipulate our currency, I think that’s a copout.

Dylan Ratigan: So, and you know obviously I agree with you in that regard. If we were to back away from this for just a moment though and look at the complexity of this problem and the need to try to avoid generational warfare in this country between the old and the young, the need to try to avoid the demonization of the Chinese or any other foreign entity as we try to deal with this — the problem solving here, how do we create an arena for problem solving we look at the riots emerging in London, as we look at what’s going in China, as we look at what happens when you basically barbarically try to address this and that “barbaric” is my word.

How do we alter the path to create an environment where we can really have a conversation globally China, the Middle East, Western Europe and America — that addresses the fact that there’s $60 trillion in debt here. I mean we all know the numbers, we need a real meeting in the world at this point and it doesn’t feel like the American political leadership is creating the space for that to happen.

Ron Paul: That’s right, and that is where our responsibility as the congress as they have a responsibility for that and that’s what they should be doing. Now another suggestion that could work if they wanted to because Conservatives are going to argue “you don’t cut a nickel out of military”. I say that’s not defense, that’s military and we should look at it. But what about, another suggestion just go through the process and try to whittle down on the budget, get it as low as you can and then have a rule and say “Well, the budget is so many percentage, is 20% over budget.” Cut every single program exactly the same, and you don’t have to do it all in one year, maybe have a 10 year period and cut down a certain percentage until you get it balanced, at least it would send a signal if they would agree to that.

But they’re not going to, I’ve heard a couple of our new freshmen even say “Hey, there’s not much we can cut, we can only cut the nondiscretionary funds and there is not enough there to cut, and we certainly can’t cut military.” That bothers me that freshmen are coming in with that attitude and they’re throwing up their hands. There’s nothing left to cut!… but the alternative, they don’t want the pain of the cutting, but the pain of destroying the currency, as you know is going to be much worse and that’s what I’m trying to head off…

Dylan Ratigan: And then, and in the more, I can have a bridge to you and you to me because truly without the proper theater to address this problem and with the kicking-the-can down the road being what it is, the commodity traders who walk around in New York talking about the blue dollar trade, buying commodities, buying gold and waiting for the issuance of the new currency — in their minds, that should be avoided obviously if we can do it and without creating the beginning of that conversation, there’s no way we can get to the end of it.

Thank you so much, Dr. Paul, for everything that you do in that regard.

Ron Paul: Thanks for having me.

Dylan Ratigan: All right, Ron Paul.

Thanks to Kathleen Keane for proofreading this transcript!



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219 Comments:

  1. I just wish they would bring the troops home

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  2. The problem is that the actual solutions are what nobody wants to hear. The solution at this point is painfully simple. Cut government spending. Raise government revenue. Everything needs to be cut. Social Security, Defense, blatantly failing departments like Education, Housing & Urban Dev, the list goes on. Despite rhetoric, no voter wants THEIR free money program to be cut, just everyone else's. Hence the bickering in DC. Americans whine but we're not actually willing to address this problem.

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  3. I'll tell ya the wild card here is foreign interest in US debt and Wall Street itself. They are all worried about QE2 and there's talk now about a QE3 and even a QE4.
    meltdown. stop the presses!

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  4. When is the last time you heard a representative talk about philosophy?? Good Lord we need this guy to be our next president.

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  5. The act alone of streamlining the gov't by dumping the bureacracies like food stamps, welfare, and The Department of Education does away with the cost of paying people who make careers of working in/running those programs (earning twice the average income in America).

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  6. The act alone of streamlining the gov't by dumping the bureacracies like food stamps, welfare, and The Department of Education does away with the cost of paying people who make careers of working in/running those programs (earning twice the average income in America).

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  7. Looking at the pie chart-- I would like to see the war budget cut to a 1/3 of its current amount; but it's medicaid and medicare that are consuming the greatest portion of the budget. Just do away with low income programs like medicaid, welfare, food stamps, gov't housing, and unemployment; and expand social security to everyone earning under 50k a year, over the age of 24. Let people spend the money how they wish. If you can't cut spending greatly; at least streamline how it works.

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  8. Looking at the pie chart-- I would like to see the war budget cut to a 1/3 of its current amount; but it's medicaid and medicare that are consuming the greatest portion of the budget. Just do away with low income programs like medicaid, welfare, food stamps, gov't housing, and unemployment; and expand social security to everyone earning under 50k a year, over the age of 24. Let people spend the money how they wish. If you can't cut spending greatly; at least streamline how it works.

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  9. Just a quick reminder that you may want to tune in to tomorrow's fourth broadcast from TNS Radio (tnsradio.ning.com) at 3 PM Pacific time. The first four programs are intended to be listened to in order, as each provides background material for succeeding discussion. Response has been tremendous from all over the world. I hope you've enjoyed as well.

    These are links for downloading and listening to the first 3 shows in preparation for tomorrow's program. Of course, if you miss a show, you can always catch up from these archive links:

    PROGRAM 001 DOWNLOAD LINK:
    http://www.zshare.net/audio/820088191e550288/

    PROGRAM 002 DOWNLOAD LINK:
    http://www.zshare.net/audio/82582739a239099a/

    PROGRAM 003 DOWNLOAD LINK:
    http://www.zshare.net/audio/82648461b31a1b4d/

    Owing to a software glitch, my system failed to record the third program live -- which would have produced a high quality recording. Fortunately, Dave Ardron of Australia successfully recorded last week's Program 3.
    His may be the only surviving copy. It's not a perfect recording... but it's listenable... and it's all we have. If there's a call for it, I'll try to re-record the show. Perhaps someone with processing expertise can clean it up... and, really, I lean that way for now at least, as you can hardly repeat the event as it happened otherwise.

    PS.

    In near term shows, Mike will be taking questions and interviewing other monetary reform leaders. After his first show, Austrian Economics was pronounced dead -- forever -- in the Ron Paul forums at ronpaul.com. The second and third programs follow suit, disproving all contending propositions. Of course, his original (1968) proposition was a proof of singular solution... but there's a huge world-wide following now, who finally understand all this, thanks to the TNS broadcasts amongst others.

    If you should like to pose any questions (after listening to each of the first 4 programs to see if what you want to know has already been covered), you may pose your questions at any time over Skype, by contacting Mike at Skype ID: pfmpe2012. All contact is recorded. We can integrate all good questions in future TNS programs.

    Thanks for listening... and warmest regards,

    PEOPLE For Mathematically Perfected Economy™

    perfecteconomy.com

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  10. This country is owned by the fed and the corporations. The troops are'nt fighting for anyone's freedom there fighting for pipelines and oil. The troops are the corporations muscle to take whatever they want, then we get the bill as taxpayers.
    The fed and corporations should have to pay the military themselves since indirectly is who the troops are fighting, eh working for.

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  11. There is so much in what he is saying, but is there truly anyway for the change to be made without a ground swell of support?

    I fear that the majority of us are too disinterested to expect much change.

    Thus we continue to acquiesce to further and further centralization of power, far removed from the concerns of the citizenry.

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  12. Dylan Ratigan needs to stop rambling and let Dr. Paul speak.

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  13. Dylan Ratigan needs to stop rambling and let Dr. Paul speak.

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  14. America was founded on MASONIC FREEMASONRY or CABALA . Freemasonry is the founding of "America". Freemasons sought "A" merica or the western star.

    This means the Western Star Venus. Venus is the Red White & Blue star. The statute of LIBERTY is Their LIGHT BEARER COLUMBIA or their Goddess. Your Capital Building's are TEMPLES with each having a CORNER STONE from the FREEMASONS. They ORDAIN their CRAFT with WINE CORN & OIL.

    Vigilantcitizen or freemantv

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  15. Ron Paul/Ratigan 2012???

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  16. Let the rest of the world stew in their own juices for awhile.Bring ALL our troops home. Close our embassies. Kick the UN out of the country and get out of the UN.Build up our military. Close our borders. Build up our own manufacturing capabilities again..Maximize our own energy resources. Deport all subversive people. Environmentalists. Communists. Socialists. Homosexuals, Illegal immigrants. OUT.

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  17. This is SUCH BS..SAME PEOPLE RUNING THE SHOWS.. I PROMISE THIS AND I PROMISE THAT.. PROMISES PROMISES..!! I PROMISE GIVE THE PEOPLE THERE RIGHTS BACK.,, SAME OLD TERD DANCE

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  18. Now that the tea party gave us some new people but the old political androids now want to cut social security and fund the rich instead of reducing the size of government as promised. It has become very clear to me this is the last election cycle without a third party. Ron Paul may soon bail from the Republican party in 2011 - become an independent and run for president in 2012. He is a shoe in. The last encore for both established parties - it's over. Tea party fail, no more chances.

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  19. Chase the puppet masters...

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  20. You guys don't get it. Both parties solution leads to the same outcome.
    The sad thing is. Once the dollar collapses & people are in the streets, the ones who are REALLY RESPONSIBLE for it ( Bernanke, Soros, Rockefellers...etc) Get away with it. People will be going after the fall guys...politicians. WAKE UP PEOPLE!

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