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.

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1,026 Comments:

  1. Vote for the truth. Stop the corruption. No more silence, no more secrets, it's time for a revolution.

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  2. VICTORVICTORIOUS

    Ron Paul ,Mitt Romney, Newt Gingrich, Obama, Bachman, Pawlenty any of them, all of them.
    What is the difference? They are all wealthy policiticians. That are now, like every 4 years asking the American people to fund their campaigns. Asking the 10. 4 % unemployed, the laid off teachers, police, firefighters, airline workers, steel workers, state employees, county employees, etc..on and on to send them their dimes and nickels to support their candidacy. Are you kidding me? Only one gets elected, then the others keep their campiagn funds that you sent in, then use it for their personal agendas in the Houses of Representatives.
    What have any of these so called candidates, including Ron Paul done to stem the rampant corruption that has plagued this country, NOTHING. What has the others including Ron Paul put forth in their "PLANS" that takes away any of their benefits.
    Is their paybeing cut, are they having to pay for their health benefits, work for 4 years get a pension for life that is not taxed, on and on , but we are supposed to give back some more. Political corruption that these lfe long policiticians have either participated in , turned a blind eye to or done nothing about, now want us , agian to trust that they will change things. they have been a part of for their entire political
    lives. When will we learn, who do you vote for? Until they, Ron and the others accept that they are the problem and that they have caused this problem because they cater and cowtow to their rich donors at the expense of what is good for this country, well then see you in 2012, 2016,2020 and every other ground hog day and year.

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    • As far as I understand Ron Paul made his money as a physician and is not enrolled in the congressional pension plan. He returns unused congressional office funds every year.

      What has he done about corruption? He's wanting transparency, by having audits of the fed, reducing the power of the federal government. He's against the IRS who enforce government literally stealing from you. That is the height of corruption. He understands how power corrupts. Has anyone else spoken against the TSA? Has anyone else proposed a travelers dignity act?

      Stop spewing lies and do some research. Open your eyes.

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  3. It's like telling alcoholics that alcohol is bad for you. They know it. We know it. And we also know there going to go out and buy more.

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  4. Is Ron Paul and a very few others the only ones on capital hill with any real common sense?

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  5. I changed my voter registration today so that I can vote for Ron Paul in the Republican primaries.

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  6. Forget about oil and the middle east...and dumb ass wars. We need to become "very good" friends with Morocco. They have one quarter of the worlds collective phosphorus resources. Phosphorus is not either a renewable natural resource.
    If Morocco is our best friend our future will look bright!

    Ron Paul 2012!

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  7. if he doesnt get in you americans have no hope at all

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  8. RON PAUL FOR PRESIDENT 2012

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  9. To Michael and AdvancingOverTime :

    Are you guys high on drugs or something ? ?

    Michael : Comparing Mr. Paul to Dubya Bush is pretty far-fetched.

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  10. To begin with even honest intelligent people on the right understand that the elite has hijacked the middleclass. Now they are divided between the political right and the political left. And they really don't understand what they want. Ask them how Obama is destroying their constitution and they come up with lame ideas or exaggerated lies.

    And so, ron paul is really not much different from Bush2 in his priorities. Yes, he promises to end wars but everybody knows that's nothing but a pipedream. So the way he is the same is that he has no feeling whatsoever for saving the middleclass. He's in just as much a hurry as Bush was to tax the middleclass and give huge tax cuts to the very wealthy.

    And the tea party has been so brainwashed by the priorities of the Koch brothers that they don't even understand that they have been indoctrinated into doing the dirty work of the political right and people like ron paul who obviously has no chance at success. It's the American way of course.

    So when ron paul is sidelined, you lemmings will automatically head straight for the nearest and most popular rightist candidate. Just like you have strings attached around your collective necks. You will be powerless to resist. And then you will live for another 4 years in misery and looking for a new ron paul to tie strings around your collective necks. That is, supposing that you get your acts together and really pull hard against your own best interests to get a repub elected as your new controller in chief.
    What a sad fukking lot!

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    • you trolls keep saying this. That Ron Paul is like Bush/Reagan/Bush 2/ Clinton/Obama/Nixon / FDR or whoever else.

      All I can say is his voting record speaks for itself. He hasn't just suddenly come up with these ideas (as you will find every other candidate is now copying him).

      He's been speaking out against militarism and the Federal Reserve and the expansion of government his ENTIRE career.

      Look at his voting record. DO SOME RESEARCH.

      I don't support him blindly. I support him because he's been the most consistent Congressman, with the best voting record. I constantly challenge myself to find flaws in his arguments, to 'reductio ad absurdum'. There are VERY few times I am able to find a logical flaw or fallacy in his arguments, nor any inconsistency between any of his positions.

      He's not perfect by any stretch, but he's a billion times better than any previous president we've had.

      On the other hand you can look at Barney Frank who speaks out both sides of his mouth at the SAME time. Just recently he said he's always been FOR poor people RENTING. Then why pray tell did he FORCE Fannie Mae and Freddie Mac to give homeloans to subprime lenders? There are many more inconsistencies you could easily find on Frank's voting record. And I'm not just picking on Barney Frank, pick any other congressman and I can guarantee you they are hypocrites to the extreme.

      Please name ONE other congressman who RETURNS funding to the treasury every year? Whoever you support, have they spent less than was allocated to their congressional office?

      Even Obama managed to lie his way into the Whitehouse. Don't take what Obama said vs what he did and project that on Ron Paul. Obama doesn't have the history of speaking out and voting against militarism, the Patriot Act, expansion of government, welfare spending etc.

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      Highly rated. What do you think? Thumb up 12 Thumb down 0

    • Ron Paul plans to end the IRS so who is he going to tax like Bush?

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  11. Makes other Republican analyses look sophomoric. Shame.

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  12. If Ron Paul could have a face to face conversation with Barack Obama live on TV that would be amazing.

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  13. If Ron Paul could have a face to face conversation with Barack Obama live on TV that would be amazing.

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  14. Ron Paul 2012!

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  15. Ron Paul 2012!

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  16. this man is like a teenager trapped in an old mans body. no wonder so many of the older generation hate him and the younger love him :)

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  17. thejohnmalkovich

    1,329 likes and only 6 dislikes! Wow!

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  18. Game over Game over!!!! This Matrix the European created is over.

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  19. Americas' only hope is God Almighty. If he wills to use Ron Paul to win our country back for us, we should get behind him, and fight for OUR Country.

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  20. Ron Paul is senile. OK, not all the way senile. He's in that stage where he can put words together. And it all sounds nice. But it all comes from a delusional world in the back of his decomposing brain.

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