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.

  • glitchesandglitter

    probably the last time he will run. let’s join together and make this man president.

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  • TheTokinbudZ

    Shit is Dr. Paul spitting knowledge the rest of that room can’t comprehend because he is smart and they are stupid AGAIN?!?

    Look at him put quality sentences together and make perfect sense while doing it. There is no way 90% of Congress can deal with that.

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  • rza221

    Sadly many are too busy being entertained to know what is actually going on. I have become so tight on money that I have gotten rid of TV and Netlfix. Thankfully this situation has only helped me be more aware of what’s going on. WE, the people, have let OUR government run loose and we have failed to steer it in the right direction. WE believe everything WE hear on privately owned media and vote accordingly. WE have to vote to steer OUR goverment back on the right path.

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  • rza221

    I agree later6868

    I feel that congress really has to get this through and early so everyone can get a good read and discuss. It is so dumb to raise the debt ceiling. How can WE, the people, pay our bills and live within our means when the government itself cannot do that. I see this effecting many people including the poor. When defaulted, if someone on social security gets a check. Who will give them something for that check? Maybe payday loans, with OUTRAGEOUS interest

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  • mrcameronmusic

    I agree with a lot of what he says, but he is making it sound like we are raising the debt ceiling in order to incur more debt. That’s not the case. It’s to foot the bill for everything congress has already decided to pay for. And you can’t sit there as a representative for the people, and yell at them for wanting gov’t programs we didn’t put in place.

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  • jimdoesjokes

    I am an independent and applaud Paul for obviously calling out both Parties on the stupid idealisms. The only people that ever made sense to me. “People should work for their country” -JFK ” , “Everyone should pay taxes according to their earnings” – Bill Clinton, and now finally “Both Democrats and Republicans suck ” – Ron Paul. All this is blatant over paraphrasing, however isn’t that what politicians do?

    »crosslinked«

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  • TheJaquio79

    I’d vote for Ron Paul. But like one of the posters said below me I don’t think the powers that be will give him the time of day. Ron Paul would represent a real change and the powers that be like things just the way they are.

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  • TulaiMr

    Most people won’t even understand what he’s saying. They’ve been “dumbed down” by our government education system.

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  • jbg0093

    im glad i voted for him. he speaks the truth and doesnt try to deny whats really going on

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  • Cascio18

    Ron Paul is right on the money! But unfortunately his words will be received like a fart in a thunderstorm.

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  • jasan2121

    Inflation in the US at 9%? WTF!

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  • SuperGreyhawk

    Ron Paul is telling the truth and that is why the MSM, including FOX News and those RINO clowns trash him. The Military Industrial Complex and the Welfare State have colluded to Bankrupt the USA.

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  • oddo1

    If I was American, I would vote for him

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  • dunjak111

    If it was a heart desire of this man to stop raising the dept, he would have mentioned it before.
    This problem exists since decades, The debt line has been risen over 60 times in the past 50 years..
    Now, where the democrats have to find a solution, the reps block it.
    Finally, it is right to stop increasing the debt, ofc. But do it well planned, instead of forcing it now, not knowing the outcome..
    I doubt the reps would demand same, if they were ruling!

    Just my point of view, as a european..

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  • LiquidLettersYT

    Glad to see that every comment on this first page agrees with him. Makes you think.

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  • Boomies559

    ok so what would happen if the federal reserve was removed?

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  • acidhead43

    Ron Paul is going to win the Presidency!

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  • acidhead43

    Ron Paul is going to win the Presidency!

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  • FREExIRAN

    ron paul is payed by saudi

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  • PinkTacoTuesday

    To raise the debt ceiling is like telling someone who is 100,000 dollars in debt, to take another loan out to pay that debt. It is the most ridiculous answer to solving the debt problem.

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