Transcript
Ron Paul: Mr. Speaker, the Congress is concerned about the debt, the people are concerned about the debt, the markets are concerned about the debt, the world is concerned about the debt and what we’re doing here today, because we live with a world fiat dollar standard and so the whole world is engulfed in this very serious problem.
I do not understand, though, that if the debt is the problem – and I agree, the debt is the problem – that for us to come here and raise the debt by 2.4 trillion dollars is the solution. That just baffles me. I think it’s a distraction, because when a country gets indebted to the degree that we’re indebted, the country always defaults. This is historic, especially if the country is a significant country. On occasion, a small country will quit sending the checks and they’ll go bankrupt; we’re not going to do that, but we will default because the debt is unsustainable.
This year it is said that we have a debt increase of 1.6 trillion dollars, but that’s not true. If you count what we borrow from the pension funds, the Social Security and highway funds, it’s 2 trillion dollars. But if you include the increase in the entitlement obligation, it’s 5 trillion dollars. So this is a huge, huge problem.
But the argument here is, how do you default. And it is said that if we don’t raise the debt limit, we’re going to default and not send out the checks. I don’t believe that for a minute, somehow or another the checks are going to go out.
But if you really wanted to live within the technicalities of law, there’s a very simple thing you could do. We owe the Federal Reserve 1.6 trillion dollars. Well, that’s not a real debt – they bought those treasury bills with money out of thin air. We could just write that off or quit paying the interest, tide ourselves over and get down to serious business to cut back and live within our means. And that would be a solution. But to increase the national debt will only encourage another type of default, and that’s what we’re going through. We’re engaged in the most difficult and a very bad way of defaulting; and that is through the destruction of the currency. Today we have an inflation rate of 9%, and that is defaulting. So if a government can default and print money, and if they can get a 50% inflation rate over a period of time, they’ve cut that debt in half. That is the goal, that is what’s happening, and that is very, very serious.
Just in these last 3 years in dealing with this crisis, the dollar has been devalued 50% against gold, and gold, of course, is the best measurement of the value of a currency and it’s been that way for thousands of years and it cannot be denied because it’s economic law. So we are defaulting, and when the American people go out and start buying goods and services, like they are now, they’re recognizing it costs a lot of money. So right now, we’re in the early stages of rampant inflation, which means we’re going to be hit with higher prices and higher interest rates. That is going to be a tax. So I see the only solution, and that is to cut spending.
Now the reason we don’t cut spending is one side loves entitlements, and the other side loves war. And even this token attempt of a 100 billion dollars of cuts when we have this huge, huge deficit… But there’s no mention of cutting military spending. I don’t want to cut defense spending. This military spending doesn’t defend us, it makes things worse.
Our problem in this country doesn’t come only from the Congress, it comes from the people! The people still have a strong appetite for big government programs. They’re not willing to cut, they think government can take care of us from cradle to grave, and that we can be the policeman of the world. So someday, we as a country, we as a people, and we as a Congress, will have to say, “What should the role of government be?” The founders had a pretty strong suggestion, they wrote a constitution that said the government should be very limited, and the government should be protecting our liberties and providing national defense and a sound currency. We don’t do any of that. We’ve embarked on a course that was destined to end badly and this is where we are today.
So if we don’t understand this, this default will not be because we don’t send out the checks – we will send out the checks – it will be defaulted on because people will get their money back, or they will get their Social Security checks, and it won’t buy anything.
That is much, much worse than facing the fact that we not raise the debt limit and work our way out of this. That is devastating economically, and it’s devastating politically, because if we just saw a taste of what happens, how the anger is built when you see other countries in Europe now defaulting and can’t pay their bills. So this is more significant than ever, because we provide the reserve currency of the world.
Processing your request, Please wait....
Ron Paul kicks ass again.
Dude’s on fire.
»crosslinked«
Report this comment
Like or Dislike:
0 
0
A great man a brave man. I only wish we in the UK had a Ron Paul.
Report this comment
Like or Dislike:
0 
0
Go Donate Ronpaul2012dotcom
Report this comment
Like or Dislike:
0 
0
Read my article on the debt ceiling how Congress is saving the necks of the banks,Wall Street and Corporations on my tumblr
Report this comment
Like or Dislike:
0 
0
ron 2012 wooooooo!!
Report this comment
Like or Dislike:
0 
0
Isn’t he just parroting Barry Obomb-ya? LOL. RON PAUL 2012!!!!!!!!!
Report this comment
Like or Dislike:
0 
0
The greatest American of this century so far. His message will grow and grow and is unstoppable.
Report this comment
Like or Dislike:
0 
0
Ron Paul 2012
Report this comment
Like or Dislike:
0 
0
RON PAUL! speaking the truth like always.
Report this comment
Like or Dislike:
1 
0
kill the fed!
Report this comment
Like or Dislike:
0 
0
So true — WRITE OFF THE FED RESERVE!
Report this comment
Like or Dislike:
1 
0
The only intelligent speaker in Congress.
Report this comment
Like or Dislike:
1 
0
Big government = big troubles.
Report this comment
Like or Dislike:
0 
0
Really, really well said. For the love of all that is right in this world… President Ron Paul.
Report this comment
Like or Dislike:
0 
0
This guy should run for President!!! I can’t wait for the day where I can listen to his speech without getting interrupted by a news anchor, a debate “ding-ding!”, or a “The gentleman’s time has expired.”
Ron Paul 2012!!
Report this comment
Like or Dislike:
1 
0
We don’t change the tax rate because it would threaten congressional jobs to not have those perks they can hand out.
Report this comment
Like or Dislike:
0 
1
If I didn’t see it was Ron Paul talking I’d swear that God himself had come down to scold us. This man wouldn’t tell a lie to save his own life! Americas last hope!
Report this comment
Like or Dislike:
2 
0
Goldman Sachs CEO, Lyold Blankfein is Jew
IMF Deputy CEO, John Lisky is Jew
Ex IMF CEO, Dominic Strauss is Jew
World Bank CEO, Robert Zoellick is Jew
Ex World Bank CEO, James Woolfesen is Jew
Fed Chairman, Ben Bernanke is Jew
Ex Fed Chairman, Alan Greenspan is Jew
Obama Treasury Secretary, Timothy Geithner is Jew
George Bush Treasury Secretary, Hank Paulson is Jew
Note : This is true. Whoever removes it, may the curse of God be upon him/her. If I lie, the curse is on me..
Report this comment
Like or Dislike:
1 
1
the budget for the department of OFFENSE is $1.5 trillion, an outrage.
Report this comment
Like or Dislike:
0 
1
Thank you Ron Paul. Marco Rubio and Ron Paul are the two most trusted politicians in my book. They both love our America and want the best for the people in all sincerity form their hearts.
Report this comment
Like or Dislike:
0 
0
Tell the FED to piss off…Boom…you save like 2 tril.
Report this comment
Like or Dislike:
0 
0
Ron Paul for President, w/ a capital P!
Report this comment
Like or Dislike:
0 
0
why does no one listen?
Report this comment
Like or Dislike:
0 
0
I agree totally with Ron Paul . The entitlement programs are riddled with fraud and are indeed a huge burden on taxpayers. Still, I would say that those programs are a drop in the bucket compared to the trillion dollar decades long wars we are in.Bring our troops home , secure our own borders , get the military presence out of the 130 countries we are in and that alone would put a huge dent in the fiscal crisis .
Report this comment
Like or Dislike:
0 
0
To whomever said, “The gentleman’s time has expired” on the video:
Shut up, listen to the good doctor, learn something, and say “thank you”.
Report this comment
Like or Dislike:
0 
0
We defaulted a long time ago. When you repay a debt with devalued currency, that’s a default.
Report this comment
Like or Dislike:
0 
0
Are there any potential repercussions to writing off the 1.6 trillion dollar debt to the Federal Reserve referenced at 1:48 ?
Report this comment
Like or Dislike:
0 
0
The Daily Caller is reporting the Michelle Bachmann suffers from frequent, debilitating attacks brought on by stress and uses a lot of pain medication to deal with it. (See the blog post on Lew Rockwell’s web site.) If there is anything to this story at all, her campaign is toast. That would open the way for Ron Paul to win Iowa much more easily. Romney has already conceded it.
Donate to the money bomb today!
Report this comment
Like or Dislike:
0 
0
Ron Paul once again on the right side of issues. And he believes that 9/11 was not an inside job, but was a result of blowback and our interventionist foreign policy.
Report this comment
Like or Dislike:
0 
0
Brilliant. Now if only the rest of congress would listen.Sadly, I believe the destruction of America is the goal.He nailed it perfectly, half want war, the other half want entitlements. Both will lead to destruction.
Report this comment
Like or Dislike:
0 
0
I love Dr. Paul the most!
Report this comment
Like or Dislike:
0 
0
i have no clue how anyone listening to this cannot understand that Ron Paul is the only politician that gives a shit about the people and is not power hungry and imperealist like the rest of the neros wonting to be president
Report this comment
Like or Dislike:
0 
0
Ron Paul = genius
Report this comment
Like or Dislike:
0 
0
BORROW MOAR!
Cause thats what private citizens do when they get into financial trouble, break out the credit cards… lolz
Ron Paul You’re The Man!
Since Reagan all of our taxes have gone to the Federal Reserve in the form of interest payments on already borrowed money. Check the interest rate, our total debt, and our GDP, the IMF is literally enslaving the US.
If you H8 the NWO stop paying your federal taxes. “CLEPTOCRACY” = The World as is…
Report this comment
Like or Dislike:
0 
0
My God ….. Dr. Paul is so amazing. Are people really so stupid that they can’t recognize his genius?
Report this comment
Like or Dislike:
0 
0