Ron Paul: No More Bailouts, Don’t Raise the Debt Ceiling, Cut Foreign Aid!

Ron Paul spoke with Stuart Varney about the problem of job creation, the benefits of not increasing the debt ceiling, and how foreign aid contributed to the uprising in Egypt.

Date: 02/02/2011


Stuart Varney: This morning, ADP reported 187,000 new private sector jobs added in January. That was more than expected. But this pace is still not enough to bring the unemployment rate down below 9%; not even close. Joining the company by phone from Texas — Republican Congressman Ron Paul. Congressman, you’ve been a frequent guest on this program, talking about gold, about the Federal Reserve, and about Ben Bernanke. But we’d like to ask you today about jobs; what do we have to do to spur some real job growth in America? What do you think, sir?

Ron Paul: You won’t have real growth until you liquidate all the mal-investment and all the bad debt. Everything we’ve done in the last 2 years is to prop up bad debt and bad investment and, therefore, real growth I don’t think will come very soon.

Stuart Varney: You don’t see that happening anytime soon, do you – liquidation of all the debt that we accumulated?

Ron Paul: No, we’re doing exactly the opposite. Matter of fact, the debt is still there, but taxpayers own it. The people who ran up the debt and lived high on the hog are back living high on the hog again and getting the bailout. So it’s just a transfer of all that penalty to the taxpayers so the Fed owns all this bad debt, and we’re responsible for it and that’s just going to delay the recovery; the real recovery.

Stuart Varney: I take it that you would not raise the debt ceiling? You would live within our means, starting as soon as that debt ceiling is reached. I take it that’s your position?

Ron Paul: Absolutely. And you could pay your bills as you go along, you could have priorities, you could, you know, pay the interest on the treasury bills, so there’s, the foreign holders of the debt don’t panic. You could do that, it’s not like all the money stops. I think those who are saying the end of the world will come if we don’t raise the debt limit, matter of fact, it might usher in a new era of growth if we ever got, you know, determined enough to do that. And people might say, “Hey, that is great. These people are serious, maybe it would be a real boost to our economy and restore a lot of confidence”.

Stuart Varney: You know, I’d love to take you on on this one, but the producers are in my ears saying, “Ask him about Egypt! Ask him about Egypt!” I will now defer to the producers and ask you about Egypt. I’ve heard you on this subject before, you don’t like the idea that we spend any money to the Egyptians, or virtually anybody else. That’s your position on Egypt, I think.

Ron Paul: Yea, it’s your money, you earn it, you keep it, you spend it. If you like one faction in Egypt, you send your money over there, that’s how a free society works. No, and I think the 60 billion dollars we invested for an artificial peace over there wasn’t worth it, because all it does is build up instability. We invested a lot in the Shah of Iran, but it was unstable and eventually it broke down. So I think this is somewhat similar.

Stuart Varney: Would you say the same thing about Israel, no more government money to Israel?

Ron Paul: Yea, if we cut all the money off to everybody, actually Israel comes out to a benefit because we give more money to Arab nations, when you add it all up, than we give to Israel. And this would prompt Israel to act differently and be more self-reliant and they might have a greater incentive to strike out peace agreements with their neighbors. So I think it would change the dynamic completely. But actually it would help Israel because we would send less money to their Arab enemies.

Stuart Varney: Congressman Ron Paul, I wish we had an extra 3 or 4 hours, maybe one day we will. But I can assure you, sir, that your colleague and friend, Judge Andrew Napolitano, is sitting right next to me and he will continue the debate right after you’ve left our program.

Ron Paul: Yea, and I’m sure he’ll do a better job than I.

Stuart Varney: He will just fight with me as usual. Thank you very much, Congressman. Good stuff.


  • gunguy54

    The US is Broke why are we giving money to any nation? Totally crazy.

  • you GO, helltrackrider! Ron Paul is a true STATESMAN, not a “politician”! Like the Founders of America, he understands what Individual Liberty is, and that the proper role of government is to defend it.

  • you GO, helltrackrider! Ron Paul is a true STATESMAN, not a “politician”! Like the Founders of America, he understands what Individual Liberty is, and that the proper role of government is to defend it.

  • Snowflake70

    Time is money, money is power, absolute power corrupts absolutely – – who has been in the game the longest? Who has the most money?
    There, you will find the seeds of corruption and inequity. PROMISE.


    By this point even Ron Paul should know he should –NO MUST run for president. He would make that statement “President of the United States” have true and a positive meaning again.

  • hcwcars1

    no more money for israel ever

    people are starving right here in the usa

    plus your going to borrow money and give it to israel are we nuts

  • Fedcop78

    Ron is the only person I would actually take the time out and vote for. I refuse to vote for the lesser evil in any election and this is not the case with Ron. He is the only person that I have seen that truly represents the people of this country. I just find it sad though that there is no way the powers that be would ever let him be elected and if by chance he actually made it I would fear for his life. Keep fighting the fight Ron we are with ya.

  • sdfkjllshadflhadfshl
  • Ron Paul is the truth…

  • khalira

    Ron Paul is the truth…

  • turbo181

    Keep the message Ron! 2012!!

  • MrDeppness

    Ron Paul is the MAN! Let’s help him win CPAC so he will run for President!!!

  • If America was smart they’d elect this guy

  • samlowrey63

    If America was smart they’d elect this guy

  • AUDIT and END THE FED !!!

  • iannetta11

    AUDIT and END THE FED !!!

  • constitutionaljoke

    Their are TWO U.S.Constitutions.The one before February 21st,1871 and the one after.The Original had “OF” the people and after “FOR” the people.The Legal context changed from people establishing a government for them selves to one of some one else providing government for “We the people”. Wake up Citizen the Illuminati wants YOU in a FEMA camp.You better get Free and Independent as J.F.K.said. Remember KENT STATE in Ohio,Buffalo Springfield.Its the Message,not the Messenger.

  • Snotface42

    Pity that there wasn’t enough time provided to allow Paul to explain why the debt ceiling shouldn’t be raised. Dr. Paul makes good points on Egypt and Israel, but how many other politicians are willing to cut the subsidies and hand out? Not many, obviously. Ron Paul in 2012

  • sleedolfine15

    How is it possible that so much uncommon sense can come from a career politician????

  • 411American

    Obama is using the Govermental and doing the same thing to America as Grease and Egypt
    Obama is a DemocRATRepubliCON war monger terrorist
    Bring back our troops liar, cheat and thief .