Ron Paul: It’s All a Fraud – Boehner’s “Cuts” Are Fictitious


Larry Kudlow: Let’s go over to the House, which about 45 minutes ago passed Speaker Boehner’s debt plan. We’re now joined by Texas Republican Congressman and presidential hopeful, Ron Paul. As always, Mr. Paul, welcome back to the program. I read a piece in the Daily Caller today, you want to say no to businesses as usual, status quo and power and compromise to raise the debt ceiling. You are opposed to any debt ceiling increases. With all respect, isn’t that irresponsible? How can we operate without more borrowing?

Ron Paul: Of course, that’s why I want to stop the borrowing. I think it’s irresponsible to keep borrowing. If you have a debt problem, how do you solve the debt problem by raising the debt? See, that doesn’t make any sense to me, and it’s a spending problem and the Congress and the people don’t want us to really quit spending. Anytime you would have a token little cut, they yell and scream. So this crisis is going to evolve. I think everybody’s talking about default, but there’s not going to be any default in the sense that we’re not going to send the checks out and pay the interest; that’s not going to happen. Look at the bonds today, they did quite well, interest rates are going down, nobody’s worrying about it. But the default comes when we just print the money and pass it out, and the default comes because people are going to lose their purchasing power in the dollar, and that’s where the real problems come out.

Larry Kudlow: Well, I just want to circle back, though, because you got a 100 million checks being mailed, and yes, you could cover the interest on the debt, I fully agree with you, and the government bond market is trading very nicely off of the recessionary forecast, what, 2.75%. But what about the 100 million checks, that’s the position you’d be put in; Social Security, health care, veterans pensions, military troops fighting, the FBI. If you don’t raise the debt ceiling at all, you would reek havoc on the budget, havoc on the states, havoc on the cities. I just don’t see how you can take that position, Mr. Paul.

Ron Paul: Larry, you know something about runaway inflation, severe inflation. You remember the 1970s, I think you were in Washington at that time. Remember the dollar was under attack, we went hat in hand to the IMF and got 30 billion dollars 30 billion dollars, which is equivalent to 3000 billion dollars, to bail out our dollar. So we were on the rocks then and that was a bailout again and in a way it was a default during that year when we reneged on our promises to pay with the Bretton Woods Agreement.

So yes, I think it’s much worse to do what we’re doing, continue to spend, and usher in an age when all the checks bounce. And that is going to be much worse. You have to have priorities, and if Congress doesn’t give the President priorities on how to pay the bills, the President, I believe, has the prerogative of picking and choosing and spending the money as it comes in and face up to the fact that we are bankrupt. To deny that we’re not bankrupt is a big problem and will usher in this age of just endless spending and endless debt. You cannot solve the problem of debt by accumulating more debt. You would never tell an individual that’s way over their head with credit card debt, “Oh, what you need is more debt, and you’re going to be happy”. A country can’t do it either.

Larry Kudlow: Alright, let me ask you this, Congressman. In your campaign will you actually put out a blueprint plan for a balanced budget in 10 years? Because I know the Balanced Budget Amendment is in the new House plan, I understand that. But the odd thing to me, as a former budget official is, I have never seen anybody put on paper a plan that gets us to zero on the deficit in 10 years. Will you have such a plan on your campaign trail?

Ron Paul: Well, I can make it very simple; let’s just freeze the budget, give everybody this year what they got last year, and it would finally balance, probably in less time than that. So that would be a pretty good blueprint, and why should anybody scream? Do you know, Larry, even under the Boehner plan the spending is going up over a trillion dollars. So all these cuts are fictitious, they’re only cut in the CBO projected increases. So it’s all a fraud. We know this is all political gamesmanship. This bill has nothing to do with solving the problems.

Larry Kudlow: I agree with you, sir.

Ron Paul: Okay, good.

Larry Kudlow: But a balanced budget plan, I want to see one on paper. Anyway, Congressman Paul, we’re out of time. But I appreciate your time very much this evening. Good luck on the campaign.

Ron Paul: Alright.

Larry Kudlow: As we continue our live coverage of the House vote on the Boehner bill, coming up…


  • VenezuelanBeaver

    I am socially and economically liberal, and even I can respect Dr. Paul’s fiscal policies. I don’t like the idea of dismantling public education and I can see where a balanced budget amendment could really hurt us in the long-term, but Ron Paul has an incorruptible integrity that I have only before seen in former senator Russ Feingold.

  • yabcoder

    only honest man in washington

  • TajiTJ

    Sounds like old Kudlow is long the market. He can spew fiscal discipline all he wants but when it comes to balancing the budget he is crying to the deficit gods.

  • srpenquino

    Has Kudlow gotten less conservative lately?Whatever, I love both these guys. RP is right though.


    I never bothered to vote before because every 4- 8 years they just change the face of who is gonna fuck you. However this up coming election I am going to and it will without a doubt be for Ron Paul. It’s about time we have someone who cuts thru all the bullshit and isn’t afraid of doing his job.

  • heymisterderp

    March Ron Paul into the fight against the Clinton-Bush-Obama Establishment and let’s give ourselves a real damned choice already.

  • constitutionaljoke

    The AthetisHominid/ Why? Do I Fill the Bill for Insane?

  • SaharaForce

    The first and best act of Ron Paul being president would be to transfer the debt to those who caused it! The American people are nothing to blame for.
    The next step is to definitely kick out of the systems those who caused the debts.
    Then change the systems, the politics, the rules for legislation, banking, etc., etc., drastically so that all insanity and insane persons disappear.

  • iCallofDirty

    I love how he attempts to marginalize Dr. Paul yet ends up agreeing with him.

  • captkirkconnell

    The American Constitution protects Jewish people from idiots like you. Vote Ron Paul to return to the American Constitution and protect our Freedoms. The “Jews” have no greater friend than RON PAUL. JewPhobic idiot. Jews build a paradise in the desert. A criminals religion is not a factor in Justice. Nothing is the Ron Paul movement is JewPhobic or any other generalized phobia which you are using as a way to weaken political power of a sane Political Movement to restore the Constitution.

  • Garlannd

    It takes guts to say this and it takes integrity to stand behind it. Both two fantastic things Mr. Paul has.

  • IamTheAntiMartyr

    No…he cant save us. But he can give us the means and the freedom to save ourselves.

  • daveevegas


  • TheRealEvo

    i love how youtube keeps on censoring ron paul by keeping his views low, when his like clearly show that he has alot more views. This type of censoring is to keep him off mainstream, FUCK THE MEDIA.

  • mrsparex

    If a married couple agreed to continue borrowing when they are “way over there head” in debt already….we know what would happen don’t we?

  • OutlaYa


  • mike6459

    why would Ron Paul want to be a president of a sinking ship? As much as I like Paul, I think he could only win, if the US defaults and declares bankruptcy before the election, but we know that won’t happen

  • kessass83

    As long as Jewish economist top adviser will advise to Pres. and Congress and Senate that debt is good and austerity is bad so long you will postpone something that is inevitable: another recession or in other word correction of the whole hoax federal system. But they know very well that they just postpone that collapse and they know that the further they wait the worse it will get. But I think they know that they will be evacuated into Bahamas island where they will be safe from civil unrest.

  • overlogg

    Kudlow is an idiot….

    Paul is the last great hope for america…

    we are circling the toilet bowl as we speak…let’s pray Mr. Paul can make it in time to undo all the criminal gaffs every president before him has made.

  • Aeimos

    This guy is an idiot. We can stop borrowing, we just have a lot of momentum so it will take time to slow down on borrowing and reverse our direction towards a balanced budget. He just wants to bring the world economy to a screetching hault going 200 mph because he thinks somehow that will solve all of our problems? Some people are too stupid for their own good.