Ron Paul to Congress: If Debt Is the Problem, Why Do You Want More of It?

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.

  • ecotts

    My Hero!!

    Like or Dislike: Thumb up 2 Thumb down 0

  • BobbyWarrenMiller

    This says it all. CNN “T-Mobile USA Inc. spent $1 million in the second quarter to lobby the federal government on AT&T Inc.’s plans to acquire the company from Germany’s Deutsche Telekom.”

    Who did they pay and for what?

    Like or Dislike: Thumb up 1 Thumb down 0

  • kooploo

    paul12

    Like or Dislike: Thumb up 1 Thumb down 0

  • jgehb

    I suggest we hold Mr. Obama to a promise he broke (one of many) when he was running for President – have this debate broadcast on C-SPAN, so that the American people can see what is involved and can see what facts/truth are being presented and where those facts/truth are coming from.

    Let’s stop with the easy verbal attacks being made by our all-knowing representatives in Washington, DC – claims that they don’t have to back up.

    Everyone: Don’t LISTEN to what politicians say !!!

    Like or Dislike: Thumb up 0 Thumb down 0

  • ConstitutionBenFrank

    Idiocracy is a form of government that seeks to fulfill all appetites (welfare) and passions (war) at the expence of the durable natural laws.

    Like or Dislike: Thumb up 0 Thumb down 0

  • WebbsInferno

    Please get this dude in office…he’s the only one that makes sense…and i think politics is bullshit

    Like or Dislike: Thumb up 3 Thumb down 0

  • brettux

    It sounds like Ron Paul is America’s Last Hope!

    »crosslinked«

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  • metalkobra

    Anyone who agrees with a short or long term increase seriously doesn’t understand inflation, taxes and economics. Obama = dumbshit.

    Like or Dislike: Thumb up 1 Thumb down 0

  • Gassebol

    Great speech, Dr President!
    The voice of sanity – Dr Ron Paul.

    Like or Dislike: Thumb up 2 Thumb down 0

  • Osmium313

    Ron Paul’s time should NEVER be expired.

    Like or Dislike: Thumb up 4 Thumb down 0

  • AdvancingOverTime

    ron, you are a joke

    Like or Dislike: Thumb up 0 Thumb down 7

  • Ross Johnson

    It is the question that either Bernanke nor most of Congress refuse to address.Are they terminally stupid or traitors to the American people and the US Constitution?

    Like or Dislike: Thumb up 7 Thumb down 1

  • czubspenx

    The only guy in Washington that makes any sense. The rest of your so called “representatives” have been bought and paid for and could care less about you, the taxpayer.

    Like or Dislike: Thumb up 4 Thumb down 0

  • midwestcharm

    Ron paul supporters gather at dailypaul com

    Like or Dislike: Thumb up 4 Thumb down 0

  • 99Steve

    Just yesterday this video had over a thousand likes to it. Now it has 973. Hmmm… I wonder why <_<

    Like or Dislike: Thumb up 2 Thumb down 0

  • 0mega519

    Man they couldn’t wait to interrupt Ron to tell him his times up. Damn corporate haters! Thats my fear that he wont get elected. The establishment can’t have a revolutionary change, o noooo!

    Like or Dislike: Thumb up 5 Thumb down 0

  • TheIxtlan

    Why worry about the US debt ceiling? Why worry about it since the world is going to end any on Dec. 21, 2012.

    Some say the world is going to end on Oct. 21, 2011 this year.

    So people, stop worry. The end is near!

    Like or Dislike: Thumb up 0 Thumb down 5

  • jupitersmoonz

    i have no clue what you people are talking about. you have to be a robot or something to be part of congress or w/e.

    Like or Dislike: Thumb up 0 Thumb down 3

  • vakeraj

    TOO. MUCH. COMMON. SENSE.

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  • theunknowncove

    Great speach :)

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