Chris Cotter: … but today it’s all about the gang of six, or is it bait and switch? The White House claims this is the way forward, it aims to slash the deficit, by hiking taxes now and forming committees to cut most of the spending later, that sound familiar? Well it should, in 1982 president Reagan agreed to a deal including three dollars in spending cuts for every dollar in tax hikes, the cuts never came, the taxes certainly did. Ron Paul was there, the Texas Congressman and Republican presidential candidate is here now. Congressman Paul, are you concerned that we are doomed to repeat history here?
Ron Paul: I suspect we will, I mean that’s the way governments operate and there’ll be a lot of promises. Actually the only thing that you can count is next year’s budget. We only do one year budget at a time, so all these promises, outer years, it really doesn’t mean anything and that’s where all the cuts are, in later years.
Chris Cotter: Well with that said is it trickery, is it just a way to get a deal done, then why are we looking at year 7, 8, 9 and 10 in terms of making all the cuts, why don’t we focus on cutting next year?
Ron Paul: Well, I guess they don’t have the stomach for cutting because even though there’s a lot of noise about cutting, there’s still a lot of noise out there about spending and Republicans are supposed to be the cutters, but they never talk about cutting anything from our military occupations around the world, and then if you tend to be liberal or moderate, Republican or Democrat, you certainly don’t want to cut any entitlements, so the process goes on. So there’s a pretense and they’re always taking care of the emergency, just like the CR, with the CR they went to the deadline, they finally passed it, and they’re doing the same thing with this debt increase and I’ve been predicting something will pass, the debt will be increased, but my big concern is that they will liquidate the debt, they will default through the inflationary process.
Chris Cotter: That’s going to take a little while, I wanted to ask you about CUT, CAP and BALANCE, now you signed the CUT, CAP and BALANCE pledge, yet last night on the floor, you voted against the proposal. Why is that or why was that?
Ron Paul: Well, the pledge didn’t have any details, it was a single sheet of paper, it said they would have significant cuts and they wouldn’t raise taxes and they would work for a balanced budget amendment. Well the balanced budget amendment hasn’t been written up, we didn’t vote on that and they didn’t say in the pledge that you were going to vote for a $2.4 trillion increase in the national debt limit. So no, it wasn’t the same thing, one was a pledge to work on it and it had a general outline, yesterday was a bill that was precise and obviously the worst part was raising the national debt limit, but it didn’t really approach anything. There were no real cuts, significant cuts. $100 billion out of $1.6 trillion deficit, that doesn’t mean very much.
Chris Cotter: Where do we make the substantial cuts that you speak of, how would we be able to do that since we’re having such a hard time even pushing $1.5 trillion in cuts as part of this McConnell plan?
Ron Paul: Well, it is going to be hard to do it in one fell swoop, but I’ll tell you what, you could change the debt limit by just wiping off the books the $1.6 trillion we owe to the Fed, that’s not a real debt, so you could lower the debt limit then we should get together and start cutting. I think the cutting overseas is the best place to start, and then why not just work on the cash flow. Why pay people in the Department of Education, Department of Energy, Department of Agriculture? Stop all corporate welfare programs, all bailout programs and just pay what you have to pay. You could pay your social security recipients, you could pay the interest on the debt and you could work ways out of it, but there’s not the stomach for that, they’re not willing to do that.
Chris Cotter: Congressman Paul, always nice talking with you, thank you sir.
Ron Paul: Thank you.