Gretchen Carlson: President Obama wants to raise taxes on businesses in order to bail out states that can no longer pay unemployment benefits. Wasn’t the stimulus, some are asking, wasn’t the stimulus money supposed to prevent this from happening by creating more jobs? Well Texas Representative Ron Paul says “Federal Chairman Ben Bernanke is responsible for losing some of those jobs”. And now he’s holding a hearing to find out just how many jobs were actually lost. And Congressman Ron Paul is my guest right now. Good morning to you, Congressman.
Ron Paul: Good morning. Good to be with you.
Gretchen Carlson: So, some complicated information in that. Let’s start with what you want to have happen when you start this hearing this morning at 10 a.m.
Ron Paul: Well, I want to get the people, and especially the people here in the Congress, to understand why monetary policy is so important. And how the Fed is really the biggest contributor to unemployment. They manipulate the entire economy through fixing interest rates and expanding money and decide they can plan the economy. But they create boom times. So they do create better times. But that inevitably leads to the bust, and that’s the recession. You have unemployment because of the recession. But so far, nobody has recognized why we have the recession. Because now, most people are advocating more spending and more inflation…print more money. And it just doesn’t work. So, we have to understand monetary policy if we want to turn this economy around.
Gretchen Carlson: So, so many people who are unemployed right now, or who may become unemployed, are asking this question of you this morning, Congressman. What can you do in these hearings to try and get some of those jobs back?
Ron Paul: Expose the truth. Because if people don’t understand what’s going on in the Fed, which means that we need to have more transparency and more auditing, then we can’t do our reforms. And then the reforms will come. But right now, there’s no waving of the wand. The most important thing that we could do in policy is to allow all the mistakes made in the economy for the past 30 years to be corrected. That means liquidation of debt and allow prices to go down. But we’re doing everything differently. The Fed and the Congress want to keep prices up. And they won’t allow the debt to be liquidated. They keep propping up bad debt. As long as you do that, you prolong the agony. We did it in the depression and the Japanese have done it for 20, 30 years and we’re embarked on the same course.
Gretchen Carlson: Okay. So let me ask you something that happened yesterday. It was announced that, possibly, President Obama wants to put in the budget next week, a bail out of sorts of the states. Because they’re so cash-strapped from extending unemployment benefits to 99 weeks. Do you see it as a bail out of the states?
Ron Paul: It’s a bail out of the states. It’s a bail out of everybody. And every problem we have, they think that the federal government and the Fed can do it. Which means they think the dollar can bail out everybody. But, eventually, it will cause a dollar crisis. But, no, this is making my point. He is trying to prop up prices and prop up spending. And we have to allow this liquidation. Actually, all prices should go down. Even wages should go down, if we want the correction. So, no that’s doing exactly the wrong thing. And I do believe most the Republicans will not be interested in raising taxes in order to extend those benefits.
Gretchen Carlson: All right. Well, most of the Republicans yesterday were in favor of the Patriot Act. You were a Republican in the House who voted a very staunch “no”. And I think some Republicans had a big surprise because they did not get the two thirds majority. Eight newcomers, as Republicans, also voted “no”. Why are you against it?
Ron Paul: Because I still believe in the Fourth Amendment. And this, literally, guts it. But we’ve gutted the Fourth Amendment ever since 1978. And, especially, since 2011 when we passed…2001 when we passed the Patriot Act. So, no, I still believe in the Constitution. I still believe strongly that you have to have reasonable cause. You have to name who you are going to investigate and the places and the things you want. And the Patriot Act allows the government to look in anything, everywhere, without specification. So, if you care about the Fourth Amendment, you cannot support the Patriot Act.
Gretchen Carlson: That’s very interesting. Because there are Republicans and Democrats who happen to agree with you on that point. Congressman Ron Paul, always great to talk to you. We’ll follow your hearings today. Thank you.
Ron Paul: Thanks a lot.