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. Ron Paul can't win because he never promises what he can't deliver.

    This is a limitation that the others don't have, they have no problem promising the impossible.... and the morons have no problem believing it.

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  2. I've forwarded a lot of his Youtube videos to my "conservative" and "liberal" friends. All of them say he's too radical?! What?
    Since when does making sense equal radicalism?

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  3. VOTEforPaul2012

    "GENTLEMEN'S TIME IS EXPIRED." SHUT UP BONER!!

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  4. America is different than other countries for one reason: Americans at least have high standards by which they can hold their government accountable to. Does America live up to its own principles and morality ALL the time?
    Of course not. However, at least we try to raise the bar.

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  5. 1) Yes there were requirements for voting.
    2) Manifest Destiny is not found in the Declaration of Independence nor in the Constitution. I would like quotes from all the major forefathers suggesting that white protestants needed to use violent force to spread Christianity
    and make converts.
    3) Loathe Democracy? Do you have evidence for this?
    4) Propaganda is one thing, the principles that America was founded on is not.
    5) Martin Luther King Jr was a communist but that is not the point.

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    • 5) Martin Luther King Jr was a communist but that is not the point.

      Don't get crazy Gideon David 30...... MLK certainly was NOT a communist.
      He was PEACEFUL demonstrator looking for FAIRNESS long ago.

      That Obama UNIONS had jobs outsourced and our AUTO INDUSTRY now is in OTHER COUNTRIES without even taxes being paid to our country. OUR AUTO profits in other countries go to Off-Shore Investments = why no taxes even paid to IRS. Bring our jobs back. Mexico was given $500M to build GM Plant and our jobs are not in USA now........ is Obama proud of himself..... sure is, and he is REFURBISHING those auto plants in USA with AGAIN taxpayer money for him to sell off to his Big Donor friends....... is Obama proud of himself YEP SURE IS, AND you can bet he's making money for doing it.
      VOTE OBAMA OUT. Let's VOTE RON PAUL IN AND BRING OUR JOBS BACK TO USA.

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  6. He's right when he says the people are also the problem. Much of this shit wouldn't have happened had people not supported it. The only way things are going to get better is if people start getting educated on these matters and change their attitudes -- stop demanding that the government take care of them and police the world.

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  7. 3:44 "Our problem in this country doesn't come only from the congress, it comes from the people." I've been saying this for years now, that until the people kick their representatives out of office for bringing home the bacon, nothing will change.

    As for the debt ceiling, Obama will win on this issue and could very well be reelected because of it. By all rights it should be impossible for Obama to be reelected, but if he can blame the right for the economic troubles, then he could win.

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  8. OperationTailGunner

    Ron Paul so far is the only politician in Washington that has the courage to speak the truth in the face of adversity. His GOP party is funded by bankers and lobbyist who are there to insure that Israel continues to receive Trillions of U.S. aid dollars. Ron Paul is the only member of Congress that has called attention to this...all the while the GOP is thinking up was to drive the U.S. middle class further into the ground.
    Ron Paul will have to run as an Independent to get elected....

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  9. Five Seconds of listening to this man , you know,, he IS The REAL PRESIDENT OF THE UNITED STATES, I give my money, I give my time, I depend on this man for my childrens future, he can depend on ME!! What about you?

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  10. AMEN!!

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  11. SyxthtySyxthSyx

    The U.S. government has stolen $13T from social security.

    It has made promises that it cannot keep regarding Medicare and Medicaid on the order of $80T.

    It will HAVE to fail its obligations to healthcare... it had better not fail its obligations to social security.

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  12. Ron Paul our only hope!

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  13. This is complete BULLSHIT!!
    NONE of us taxpaying (voters) wants more debt but ir-regardless of what we want they're gonna raise the ceiling anyways for another $2.7 trillion & continue to steal it from us. How'bout military spending. How'bout FEDERAL RESERVE interests cuts, or how'bout foreign aid cuts INSTEAD?
    There comes a time when our votes mean NOTHING ANYMORE!!
    THEN WE MARCH TO THE CAPITOL & PHYSICALLY FIRE ALL OF'M.

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    • It is not a matter of debt, it is a matter of stability. The issuance of paper currency is not a magical power that only the Elite ones control. This Power is ours to control; all we got to do is shake off these maggots. They are the problem. Ron Paul only seeks for you to see their accountability and make the issuance of new money into your God given hands

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  14. Isn't it funny how Bernanke admits to the fed making mistakes in the past, but fails to admit, that the biggest mistake of all, was letting the federal reserve system come into being in the first place. He won't admit, that their whole concept of monetary policy, is the real failure.

    Let me re-phrase that. It is a complete failure when it comes to the well being of our country and it's citizens. It works wonderful, if you are one of the rich international corporate bankers.

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  15. The policy of monetary issuance is the most powerful force within our Civilization, a force that under the US Constitution would expand naturally without the ill effects of inflation, deflation, overproduction, over consumption and over competition. But The private corporation Federal Reserve do not want to share this Power because it makes their owners super powerful and wealthy beyond our comprehension. However, the parties over! Now it seems time for accountability and reconciliation. Their monetary cycle needs proper scientific evaluation.

    It is very important for the World to understand that it was Benjamin Franklin that invented the printing press and the first water marks to prevent the counterfeiting of ‘Paper Money’. There is nothing wrong with ‘Paper Money’; however things can go very wrong if it is not ‘Properly Managed’. The fact is that it was the forces of paid invading mercenaries to stop the original US Colonies from using their independent IOU Congressional Currencies that was started the American Revolution, not the Tea Party; it was Heroin not Tea that was thrown off the ships! See Now!

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  16. NO! We the People through Ron Paul could simply deal with the situation through ‘Civilized Congressional Legislation’. We need not riot in the streets! We only need access to the POLLS so the ‘Sleepy Giant’ can get in their votes Inn! How is this possible through the Polarization of the Political Parties!? People who work and support this ludicrous International Monetary Disaster need to get the opportunity to vote, this through Ron Paul may be the last chance all those fed up US citizens have to FEEL like their vote means something. OMG let them get the proper 'Registration'. What! This is not good. Ron Paul should be granted the registration of ALL the parties that represent the US! Then see how he WINNS!!!!

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    • Let me ask you a question, how does the IRS respond to someone who has not paid a whole lot of taxes? They move in with great force and confiscate all documents and assets. Look I pay my taxes and I work my fucking ass off OK! And none has threatened the Federal Reserve with Terror that I know of; we simply have serious reservations about the methods in which they have issued US Currencies over the past 100 years. This, Sir, in order to understand and prove why their system does not work and the US Dollar needs much better and totally US Constitution Congressional Representation. This I believe the World of Nations will understand and respect US for doing and keep their Faith in the US Dollar!

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    • Let me ask you a question, how does the IRS respond to someone who has not paid a whole lot of taxes? They move in with great force and confiscate all documents and assets. None has threatened the Federal Reserve with Terror that I know of; we simply have serious reservations about the methods in which they have issued US Currencies over the past 100 years. This, Sir, in order to understand and prove why their system does not work and the US Dollar needs much better and totally US Constitution Congressional Representation. This I believe the World of Nations will understand and respect US for doing and keep their Faith in the US Dollar!

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  17. I do not understand why the Federal Reserve would beef up security in view of a potential, so called, but not properly audited ‘Default’. What do they think we are a bunch of barbarians that are going to march onto the steps of the Federal Reserve shouting and protesting like animals?

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  18. I'm with most Americans when i say, that I'm going to be pissed if I see more of this current government after 2012 elections. I don't think it was right for CNN kicking Gary Johnson off the debates. I like what he says & I love Ron Paul.
    I Love this nation & for what it stands for a "united" free people. I say, "VOTE NO" on raising the debt ceiling. Get rid of the Fed. Res. who orchestrated this economic downturn.
    People have told me, "Ron Paul dosen't stand a chance because he's too far left & too extreme". Too far left?? TOO EXTREME?? He's right where all presidents should be. Right in the middle of should be the concern of all Amnericans.

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  19. I do not understand why the Federal Reserve would beef up security in view of a potential, so called, but not properly audited ‘Default’. What do they think we are a bunch of barbarians that are going to march onto the steps of the Federal Reserve shouting and protesting like animals?

    NO! We the People through Ron Paul could simply deal with the situation through ‘Civilized Congressional Legislation’. We need not riot in the streets! We only need access to the POLLS so the ‘Sleepy Giant’ can get in their votes Inn! How is this possible through the Polarization of the Political Parties!? People who work and support this ludicrous International Monetary Disaster need to get the opportunity to vote, this through Ron Paul may be the last chance all those fed up US citizens have to FEEL like their vote means something. OMG let them get the proper 'Registration'. Voters should be granted the registration of ALL the parties that represent the US! Then see how he WINNS!!!! See how they have entrapped US!

    Let me ask you a question, how does the IRS respond to someone who has not paid a whole lot of taxes? They move in with great force and confiscate all documents and assets. Look I pay my taxes and I work my fucking ass off OK! And none has threatened the Federal Reserve with Terror that I know of; we simply have serious reservations about the methods in which they have issued US Currencies over the past 100 years. This, Sir, in order to understand and prove why their system does not work and the US Dollar needs much better and totally US Constitution Congressional Representation. This I believe the World of Nations will understand and respect US for doing and keep their Faith in the US Dollar!

    Ron Paul is only asking the Federal Reserve to open the books on all there International dealings through ‘Their?’ Private US Banks. This will help US understand why their system does not work and why never throughout all history has it; help explained to the rest of the World that the US Dollar is Strong and now being withheld by the very same ones that required the IRS Bailout in 2008.

    All Ron Paul is asking is to be honest with US and the World of Nations so we all can get things going and do what we can to deal with the Private Elite Monetary Gangs Force Grown Global Economy Anomaly.

    Surly they would not let their systems fail? What they will never do is share their power of Independent Monetary Policy. The policy of monetary issuance is the most powerful force within our Civilization, a force that under the US Constitution would expand naturally without the ill effects of inflation, deflation, overproduction, over consumption and over competition. But they do not want to share this Power because it makes them super powerful and wealthy beyond our comprehension. However, the parties over! Now it seems time for accountability and reconciliation. Their monetary cycle needs proper scientific evaluation.
    It is very important for the World to understand that it was Benjamin Franklin that invented the printing press and the first water marks to prevent the counterfeiting of ‘Paper Money’. There is nothing wrong with ‘Paper Money’; however things can go very wrong if it is not ‘Properly Managed’. The fact is that it was the forces of paid invading mercenaries to stop the original US Colonies from using their independent IOU Congressional Currencies that was started the American Revolution, not the Tea Party; it was Heroin not Tea that was thrown off the ships! See Now!

    We seek proper Representation not only for US Citizen but for every other Citizen throughout the World of Nations. The Hallmarks of the US have made great progress; Monetary Policy is one of the Last ones ‘We the People’ not only in the US but throughout the World of Nations need to Properly Master! The US should set an example and now is the perfect time to do it in a ‘Civilized Manner’.

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  20. Ron Raul 2012

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