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. Ron Paul is the only candidate that seems to understand that the country needs to take a drastic step from where we are, clean house, and start following the Consitution: NOW.

    »crosslinked«

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  2. Ron Paul video 46342 views. A video showing US military in Iraq with the music “Let the bodies hit the floor” above 500000 views. The media made us dumb as hell… burp!

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  3. I heard Ron Paul supports multi-species´╗┐ marriage so my goat lover and I are voting for him in 2012!

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    • Wow you are a retard. He doesn’t ‘support’ any type of marriage, dumbass. He supports the rights of the individual to choose who they wish to be with. It’s called freedom of association. Much like how black people can join the NAACP. Or gay people can get married. Or how you can join the association of stupid people. Government should not restrict any association provided it does not coerce people into joining it (like unions do) nor commit acts of violence upon others (like child rapists).

      If you wish to associate with goats, go right ahead, just don’t expect me to let you come on my private property with your weird bestiality fetish, nor let you educate my children.

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  4. end free trade now, import taxations on slave goods, return our manufacturing infrastructure relocated to slave countries, restore our small family goods and services suppliers who provided america with more jobs than people. Take back what the federal reserve dynasties took from us, restore NASA, the U S Military, recall all laws of presidential perogative origin, remove the 300 czars from our agencies, who operate on their own under our constitution. openended referendums replace voting fraud.

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  5. The Republicans want a short-term solution so they can turn around and do this again in six months.

    These assholes ran on job creation. Instead, they are just playing games, trying to undermine Obama. Vote these bastards out. They only care about shoveling more money to the super-rich. They could care less about the middle class and the unemployed.

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  6. sometimes I think we’re lucky just to have 1 person standing up for us…

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  7. “It comes from the people!”

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  8. nesterisagod1776

    It’s 2012 or bust. The time to get active is now. Ron Paul 2012!

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  9. In a very nice way, Ron Paul is saying, “Screw those who need help in these harsh times. The only real Americans are those with money”. What a patriot!

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  10. Amazing how this man keeps cool. He’s been warning for twenty years that this will happen. Nobody listened. Now it’s happening and he’s calm, doesn’t shout “See ! I was right!” All that matters to him is not that he is right, but that the problem he understands gets solved. Only true politician left

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  11. Nobody talks like Ron Paul. See things as is and talks as is.

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  12. Although I agree with his overall evaluation, his solution is based on several assumptions that are fundamentally flawed. E.g., how the treasury works, or how international investment reaction would impact us after a US default

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  13. we are starting a new money bomb by the people the ames money bomb counter is still up lets raise ron paul money and send a message to the establishment. readyforames{dot}com

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  14. death to the new world pig empire

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  15. He is becoming more and more a thorn in the side of some dangerous men.

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  16. Ron Paul will bring America back to prominence!!! Hell, maybe we can get the space shuttle program back!

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  17. USA is going to feel the pain of innocents killed in Iraq, Afghanistan & Palastine

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  18. They have to take us to war..again. Then they can wipe the lot and start with a clean slate.

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  19. I especially feel bad for seniors cause many of them depend on SSI & Medicare/Medicaid. Besides, they’ve earned their SSI so I don’t think its fair to include it in budget cuts.

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  20. people dont understand shit about debt when they dont die in wars like the previous generation did. until then, america will continue to fall and we shall slowly realize that they completely screwed us over and that victory is impossible. t he jews are coming!

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