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. classicalliberal11

    5 Wall Street CEOs disliked this recording.

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  2. I love this guy

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  3. He is the man.

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  4. xNoHomosexualityx

    I am seriously pissed off, both political parties are talking of promises and both have failed us today. I think and overall consider that America should consider a alternative and perhaps even a independent for a serious candidate for president. Right now we have very serious financial problems with our national debt which is at 14 trillion right now. They need to get their act together over there, we need to fire all those homos in charge before they bankrupt the United States of America.

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  5. We need 10,000 of this man to be President in succession for the next 40,000 years.

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  6. think* my bad

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  7. mabey he needs to speak simpler and just say i want to cut this or that because i thing they are not quite understanding logical speaking, lets bring it down to there level mr. paul.
    solutions is what they want and need, provide them more persistantly. DO NOT TAKE NO FOR AN ANSWER MAN this is life or death!!! call them out
    - RON PAUL 2012!!!!!

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  8. "The democracy will cease to exist when you take away from those who
    are willing to work and give to those who would not."
    ---Thomas Jefferson

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  9. paul or fail 2012

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  10. Crack job libertarian. He wants to cut entitlement programs? He's about as far from socialism as you can get, and socialism is the only decent form of government. Go to hell Ron Paul.

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  11. RON PAUL HAS MY VOTE!!!

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  12. ronpaulsignbomb(dot)com

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  13. 10 people have absolutely no idea about what's going on in this country...

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  14. At 3:42 I got the chills and wanted to jump up and down shouting, "Yes! Yes! Yes!"

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  15. ETFF = END THE FUCKING FED

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  16. All of this without a teleprompter.... He speaks from the heart.

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  17. I hope and I pray that what I am reading is true. If only we all follow through and get out their and vote for the man that should be President of the United States. Quit saying he is too old. He isn't. He is this country's only chance to come back to the country we used to be not the one we are turning into. Please spread the word of this man and let people listen to him so they can make their own decision. Vote RON PAUL 2012.

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  18. Michele Bachmann couldn't even TOUCH that attention to detail. She's more concerned about the same old worn out and vague talk about Obamacare, taxes and spending.

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  19. Ron Paul is the only candidate running for President who understands how the Federal Reserve has stolen 97% of the dollar-denominated wealth of Americans over the past century through inflation. If more Americans became members of NIA and were educated to the truth about why their standard of living is in such rapid decline, and why prices for food, gas, health care, and college tuition are skyrocketing even with real unemployment at 22%, Ron Paul would be elected as President in a heartbeat.

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  20. I do not understand why the American people are not outraged by the fact that all this debt is caused by the fact that they have to pay for the "Federal" reserved to create their money for them.

    The Fed gets paid to create money out of thin air. It is the ultimate con game.

    Why can the average American not see this?

    Are they all retards???

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