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. but the raising of this debt ceiling is just to pay off the things that we've already obligated ourselves to paying in the past. I want to cut spending like anyone else and love Ron's message but neglecting to raise this debt-ceiling now would just fuck over the country's credit rating. That ruins our interest rates and really destroys our future economy prospects. Seems like a silly time for idealistic messages of no compromise. Not just from Republicans but from stubborn Democrats too.

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    • And just WHEN is a good time to not raise the limit?

      Your argument makes no sense. If I run up a ton of debt, using your argument, since I am so far into debt, I have a house I couldn't afford, a motorcycle I really couldn't afford, a boat I really couldn't afford, a motor home I really couldn't afford, but I don't want to get rid of them, so I should get some more debt to fix it because, now just isn't a good time and I don't want to get rid of all my wonderful toys.

      Sure, that makes sense. Sheesh.

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  2. I want to vote for Ron Paul, but the media won't give him a bit of airtime . I hope to see his name on my ballot .

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  3. I totally agree with Ron Paul. Its Scarry but americans have become so used to these entiltlement programs. Like welfare and section 8 and so on... cut back... create laws to cut back. do not raise the debt to the federal reserve... HOW CAN YOU BORROW MONEY TO GET OUT OF DEBT!!!! THIS IS A STUPID THOUGHT PROCESS.. I used to work for CIti Group and I was laid off during the recession however my job used to be to sell consolidation loans and mortgages to help people get out of debt. I should KNow

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  4. Unfortunately Ron Paul seems to be the only honest and genuine person in the US government. There is too much corruption, too many lobbyist and special interest groups in everyone pockets. It would be easier to start a genuine 1776 style revolution and install Ron Paul as King. End of problem. There are too many "paid for" people that don't want him to ruin their scam, starting right at the top. If he doesn't get elected, we are doomed.

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  5. Way to tell it like its is, Ron Paul!!
    It is so frustrating to see our one-great country being destroyed by debt and inflation, just like other nations have fallen. The sad thing is that the great masses of the general public are clueless to how devaluing the dollar to keep spending beyond our means is taking us to economic disaster.

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  6. tonychapman1984

    Like the good congressman said maybe we as Americans need to stand up and tell the government that we don't need all of these agencies and services. We need to all learn how to be grown ups and take care of ourselves and our families. I will never depend on this government to take care of me or my family

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  7. tonychapman1984

    He has my vote....We need a guy like this that will get something done in the white house the past 3 years have been an absolute joke. Obama's mentality is my way or the highway, government isn't supposed to be run like that it will fail if we continue down the path we are going. Everyone in this country who is strapped for cash just can't say hey i want to raise my debt ceiling, we tighten the belt and cut our spending to keep our heads above water. Why should the government be any different

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  8. Ron Paul Hollywood loves you!

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  9. Piglatinsuperstar

    and this problem w refusing to raise the debt ceiling is another idiot idea spawned by idiot republicans! the idiots are actually threatening to crash the world economy becuz of some pledge they made to some anonymity!

    what's holding everything up is that the idiots arent satisified unless they can screw all seniors out of their social security & medicare. crybaby boener started crying before he walked out becuz he thought Obama was going to give him a free ride! Obama for Prez 2012!

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  10. ronpaulsignbomb . com

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  11. The rest of the politicians won't default outright, they don't want to look bad. They would rather count on people not understanding inflation and blame the rising prices on the weather, farmers, China, and leprechauns.

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  12. if the debt ceiling is raised, what happens next? please read this question and respond. thank you

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    • Ever more debasement of the dollar until hyperinflation sets in. There are no other options.

      Gone grocery shopping lately? Still believe inflation is only 1.6% as they claim?

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  13. Despotism is always the undelying current in capitalism' its not what we call it its what we make of it based upon setting the standards in the principles of how we define liberty ( what defines it?) Symbolism" education ? Intelligence?

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  14. We need large government, what does it matter how much money we print as long as people get what they need, JObs not hand outs, we get what we work for, then the corporations steal it away in the consolidations of our innovations

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  15. We the people should form a new alliance based upon a full restructuring of our economic means by taking back the rights to forming our own means of currency which was stolen from us in 1913' by the rich who control the dynasties of the world controlling the world economic commodities'

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  16. Its not the peoples debt, its the federal governments problem, did any american vote on a war that no one wanted but president Bush who fucked up this nation with his war on a word? Has the war made anyone in the world any safer? Whats the argument? What defines purpose? what constitutes protection of the public safety? Why do we the people form government but to protect us from the despotism of out liberties to sustain our material occupations? Money has no value over the freedom of people

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  17. Can someone explain to me what a national default is?

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  18. TheSmokinApples

    if u believe this lovely loon like this status

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  19. love what ron paul represents, he is the man that would shake up american poltics.
    truthfully speaking, they will do everything to not let this man win the election but lets just hope god is on our side

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  20. Ron Paul sends a tingle up up my leg. Ron for President

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