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.

1,026 Comments:

  1. The constitution is amendable. Ron Paul believes in Civil Disobedience.

    »crosslinked«

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  2. ron paul is truth.

    most of america are lazy to research paul, and see how he is a hero not a politician

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  3. Ron Paul is the only American politician who makes sense.

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  4. Oh man, he is SO going to be assassinated for saying things like what he does at 1:45.

    Ron Paul 2012 – the only person NOT playing political games with our future.

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  5. andrewjefferson1776

    7 federal reserve employees dislike this video. (7/22/11)

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  6. The fact that the American people have not elected this man POTUS speaks volumes about the mindset of the populace. We have become so institutionalized that we can’t imagine life without the huge federal government involved in all aspects of our lives. With freedom comes responsibility, which many Americans fear.

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  7. The spirit of 1776 is in this man. He is a modern day Founding Father. Too bad that most Americans are too dumb, ignorant, or blind, or been deceived by their media ”press”titutes to be informed of this man. The Federal Reserve as Federal as Federal Express is the biggest enemy of America. They will blow the country up according to plan. What I did was find Ron Paul and Peter Schiff and left the country and bought land in Northern Europe. Now I got gold, silver, and weapons. Tick-tock, tick..

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  8. Listen to above video of Ron Paul. Ron Paul is only candidate who is not self-centered and self-serving candidate. the only one is Gov Chris Christie who is honest and NOT self-serving and self-entered and not running in 2012.
    WHY are there only 2 who care about cutting debt and taxes and bringing BACK jobs to America? Vote for Ron Paul to get our country started to be BACK ON TRACK. Get these self-serving candidates out of our government once and for all.

    Only an honest candidate would support Ron Paul who has been honest with us for over 20 years…… his voting proves it. We The People must vote for Ron Paul.

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  9. Some suspect that the today’s Norway attack were don by the MOSSAD becaus Norway was ready to recognize the Palestinian state, they were opposing the Greece aid and they wanted to withdraw from bombing Libya ! The mainstream media is already implanting the al-qaeda islamist theory about the attack!!!

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  10. Any Republican or Democrat who does not give credit to Ron Paul for NOT raising debt ceiling or NOT making big cuts to spending or NOT wanting to balance budget is not a credible candidate for ANY OFFICE.
    Those who we voted into office in the 2010 Election for doing so will be VOTED OUT FOR NOT DOING SO.

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  11. RON PAUL 2012 …. or explain to your children why you let their Country down.

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  12. Even Governor Chris Christie advises Obama to STop running out of the room when you don’t hear what you want to be said…….. Christie says – ALL must stay in room until agreement is made….AND there should NOT be behind closed doors talks ….. CUT the spending. DO NOT raise the Fed Debt Ceiling. Balance the Budget. Gov Chris Christie says Obama hasn’t given a Federal Budget in over 800+ days…….. and Obama is bad leadership.

    Gov Christie in Iowa this week……. will be very interesting.
    A GOOD leader does NOT walk out on his own Federal Budget Debt Ceiling Talks.
    A GOOD leader CUTS the spending and takes care of his OWN country first.

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    • VOTE for Ron Paul – he will cut the spending.
      Ron Paul will stop the NEXT Stimulus/BAILOUT that the FED says it wants.
      Bailouts to banks and wall street are killing American businesses.
      AUDIT the FED or CLOSE IT.
      NO more Bailouts……. Fed is killing the American Taxpayers.

      Cut Congress pensions and salaries…… let’s see how fast they THEN will cut spending………. So far Congressmen have MADE money on it from their special donors. It’s time to CUT Congress Money Tree Down.
      2010 Election was about GOP going to Wash DC to STOP all this spending, and THEY want to COMPROMISE? no no no no……. do as you said you’d do if you got elected……. or you will be voted out.
      REMEMBER what the Unions said to Wisconsin Legislature “we voted you into office and we can vote you out of office” [that’s when WI Democrats left town to filibuster instead of staying to talk/vote].

      Those who NOW vote to raise debt and compromise on spending WILL BE VOTED OUT OF OFFICE NEXT ELECTION. Remember you have to be in Congress 5 years before you get that LIFETIME PENSION & SALARY…. you will not make it. YOU WILL BE VOTED OUT.

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  13. WHY is Ron Paul the only one who says CUT the spending and CAP the spending by NOT raising National Debt and Balance the Budget? …… even Chen of China advises USA to stop the spending and take are of your own country – you don’t see China spending like there is a MONEY TREE that just GROWS MORE MONEY like USG Printing Press that devalues our dollar every time they do it.
    Obama won’t even present Federal Budget – now it’s over 800 days he has not done it…… doesn’t that tell you something?
    Ron Paul doesn’t say CONDITIONS TO BE GIVEN FOR RAISING DEBT like Michelle Buchanan wants raising of DEBT if conditions met with spending cuts.
    no no no no ……. NO Conditions. Just do not raise the debt.
    Again Ron Paul is the only one…

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  14. 1) There is only one standard. Failing to live up to it is a double standard.
    2) WIN, LOSE, or DRAW it doesn’t matter. Ron Paul is using his platform to influence and persuade the masses. It is an intellectual war that is being fault. We all know the system is corrupt.
    3) That isn’t manifest destiny by definition.
    4) Your rants about the forefather mean nothing!

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  15. Lets go down in the history books as the generation that turned this country around, NOT the generation that broke the camel’s back.

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  16. One big flaw, he said that we don’t need to be spending money on defense, yet later he emphasized on traditional government regulations, which includes protecting Americans from foreign aggression, which in turn is defense spending.

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  17. Ron Paul is real hope for America..
    NO MORE SPENDING! ABOLISH THE INCOME TAX! ABOLISH THE FED!

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  18. If you haven’t heard one of Dr. Ron Paul’s speeches, I encourage you to look him up. With 30+ years in politics, he has integrity and hasn’t lied once. Truth and freedom is his philosophy, and he knows that if we continue to allow the government to violate the CONSTITUTION using the unlawful Patriot Act, America could slowly turn into a Dictatorship run by filthy money-infested conglomerate bankers.

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  19. “the solution is to cut spending, but the problem is one side loves entitlements (Dems) and the other side loves war (Rep)!”

    I laughed so hard! I love when Ron Paul simplifies how the corrupt interests are destroying this country, and the American people still don’t care… :(

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  20. Right on Ron!

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