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.

  • Cher

    I would just like to remind everyone supporting Dr. Paul , please be sure that you register as a Republican so you are able to vote for him in the critical primary election . If you live in a closed/semi closed primary state , you MUST be registered as a Republican to vote that ticket in the primary , ( you can vote anyone in the Nov.election ) . The 13 closed state primary states are : AZ, FL, CT, DE, MA,MD,NY,KY,OR.OK,SD,UT,WV . I would hate to have people disappointed on primary day and we don’t want to let Ron Paul down . I imagine many of his supporters are currently Dems . so that is why I am posting this all over.

    »crosslinked«

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  • jamil316

    Pakistani/Americans for Ron Paul 2012

    Vote Ron Paul 2012

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  • timeoftroubles

    The sole voice of Logic & Reason on Capitol Hill. This is the only politician I know of that speaks of comprehensive cost cutting to live within our means. That is, cut entitlements and military/war spending. I only wish he would distance himself from the corrupt Republican Party and start an independent movement that people can look to as a new symbol of hope. No more Reps! No more Dems! Ron Paul in 2012!

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  • marinecorps29

    Screw these wars, screw the Fed, and screw the rest of those bimbos who call themselves “candidates”. Ron Paul must be president! If he doesn’t get the nomination I don’t know what I’ll do.

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  • 616MGT

    Hello, is this thing on? Are they listening to you Ron?

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  • TheJourney000

    Love ya Ron!!

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  • JUANO510

    I GOT CHILLS…… NO LIE SON

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  • gideondavid30

    Thomas Jefferson understood that the South would never go for the emancipation of slaves….and with no South…no American Revolution.

    The 3/5th Compromise did not consider blacks 3/5 of a person…it had to do with the Voting and the hypocrisy of the South.

    The point is men like Marth Luther King Jr. referred to the Declaration of Independence for the advancement of minorities….as in America failed to live up to its own philosophy of equality and freedom.

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  • MishuTaste

    Ron Paul proves that a politician CAN be intelligent.

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  • urdisturbing

    Debate question: should the 5 year old child of an illegal immigrant receive emergancy medical care?

    Ron Paul: Well the government has bankrupted the system and we need freedom and blah blah blah. Look over there, a distraction!

    John Stewart: I’m sorry Mr. Paul, the correct answer is YES.

    Dogmaticism can make decent people (Ron Paul) think terrible things.

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    • Libertarian777

      But the question itselfis a red herring.

      You are presupposing that all children going to the emergency room are emergencies.

      Should a 5 year old illegal immigrant be denied schooling? Medicine for a cold? Clothing? Food? Housing? You will say NO to all of these. Then the next question is, if so, they should not be denied this, who should pay for it?

      The correct answer is freedom. If you wish to contribute your own private property to fund medical care and schooling for illegal immigrants,that is your prerogative. If you do not want to you do not have to. The government should not coerce you to fund it either way. That is Ron Paul is saying, but people like you will never understand the concept of true freedom. You always believe the government must take my property to fund one of your ‘moral’ viewpoints of having to provide food, care clothing or what not to others. If there was true freedom I could give my money to whom I choose. Instead I have less money to give to charity because it isn’t taxed away and inflation debases what little I have left.

      He is NOT ‘distracting’ you. He is saying the same mantra over and over. TRUE FREEDOM. You just get excited when you don’t hear the answer you want to hear

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      • Libertarian777

        Sorry for the typos, i’m saying it IS taxed away.

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  • 55hulkman

    We would not be in this mess if it weren’t for those wallstreet thieves

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  • http://stillanotherlife.blogspot.com LeRoy Murray

    Another thought tat occured to me as I was reading through these posts is WHY are there so many prisons? It costs a fortune for every prisoner? I could live nicely if the cost of a single prisoner was my annual income. Mr. Paul needs to committ to finding another answer to just locking them up and paying the cost. Why not reserve prison for the real criminals, murder, rape, etc. The non-violent confine them at home with that braclet on their ankle to keep an eye on them, and make them work at a job to support themselves and their families? That would surely reduce the budget. Most people in prison are non-violent offenders it would bring the cost way down and reduce the number of prisons needed, the families on welfare, etc.

    Lee Murray

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    • Granny Franny

      Ron Paul plans to legalize pot so prison populations should go down.

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      • http://stillanotherlife.blogspot.com LeRoy Murray

        That’s a start, but only a start. We have the largest prison population of any country in the world. It costs a fortune and does nothing to reduce crime. The cops and courts throw anyone and everyone in jail. Change the laws, reduce the number of cops, da’s, judges, and courts, get the non violent offenders serving at home supporting themselves and their families, get rid of a lot of the prisons, it’ll reduce costs a lot.

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  • BillyThe Kidd

    RON PAUL – will KICK ASS! Give him a chance!

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  • Napoleon1Blownapart

    one of the few in congress who knows what the hell he is talking about

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  • kooploo

    i love how ron paul always uses up the exact amount of time hes allowed and they try and cut him off but hes only got 3 more words to say to wrap it up. RON PAUL 12!

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  • lawrencedunn

    True words from a man that hasn’t been corrupted

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  • FalconMan1960

    Ron Paul for President in 2012.

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  • freemanx2x

    How we can fight against another election fraud ?

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  • dc202009

    His solution for the FED debt is priceless. We don’t owe you shit for that counterfeit

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  • BoWeava

    I love reading the comments on this video. Read these and then go to anyone else’s video and listen to the children not play well together.

    This is probably the best speech I’ve heard from the good Doctor. PURE CONVICTION!! His cannot be matched by ANYONE!!

    They couldn’t wait to say “GENTERMAN’S TIME HAS EXPIRED! GENTELMAN’S TIME HAS EXPIRED!”

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