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…


  • Kousaburo

    President Ron Paul 2012-2020.

  • FawxNewbz


  • bertly71

    Raising the debt limit as a solution to a crushing 14.3 trillion dollar debt is like firing up a fat boy and talking about the perils of pot smoking. Only in DC does this kind of thinking make sense.

  • kommisar

    I don’t get why a lot of people can’t see the insanity in raising the debt limit. Economics is not a simple subject, but a lot of principles in a stable economy are common sense. In this case, it’s common sense that you have to cut spending if you’re in over your head in debt, and that if you keep expanding the federal government, your bills will go up. Why can’t more people think of this in terms of simple logic? Raise the debt limit. What a bozo move.

  • TheGreatPenetrator

    Cut your fucking military you idiots! What’s the use of murdering innocent civilians all over the world? And then prosecute the war crimininals – Bush, Cheney, Rumsfeldt, Obama etc.

  • Joe2000King

    the thing is, Keysian economic is a lie which has sold, becase it’s theft. It’s a powerful theft. They use “good intentions and proactivity and myths and lies and false flags to sell it, but it’s theft. When you make a real model compasision, you think it’s false. The economy is based on theft so keysian economic came smoothly into the mix. Production of sub par product, extended and easy credit, keep the cycle going.. AND MAGIC OIL TO DO THIS WAS KEYSIAN’S MAGIC OIL. you’re 1 of the godlessRep

  • constitutionaljoke

    rw12 an economy comes between individuals or private businesses according to true supply and demand. example you got a car and I’m a mechanic or you need tires and I manufacture tires. Government is not suppose to be a business. But it consumes true taxes and redistribution of wealth. America makes it own enemies cause it always need a bad guy,so you the public will live in fear and taxing is easier.The world does not owe me a living.Does it owe you one?

  • frankiegmh

    Anyone who would claim that Ron Paul understands nothing about Economics either has never heard him speak or they themselves know nothing about Economics. Now you can disagree with his politics or his Economic theories but he is probably one of if the most knowledgeable congressman in office today. Most politicians have never even heard about Adam Smith, Mises, Hayek and anyone else you care to name. By the way he said individual not household, at least try to make your criticism accurate.

  • AskTheMisanthrope

    Comparing a gov’t to a household….just proves he understands nothing about economics

  • Starry2000

    1:14 Default is when we don’t pay our debts Ron Paul. He isn’t getting it, or he chooses not to.

  • avionicswirenut

    Bush raised the debt limit several times…….We need a leader to fix all of this shit….Until the lobbiest get kicked out and the banks and big companies get kicked out, it will be the same old shit….The people in DC are just bitches of the banks and large companies….

  • EndTheFedRes

    Kudlow is an ass hat.
    How did it feel Cudlow? To get your ass handed to you?

  • desipimp299

    i come to youtbue and type “ron paul” everyday to listen to the congressman’s recent interviews. thank you for uploading and keep up the good work. i think ron paul has a good chance of winning next year.

  • HixsonLibra

    We need a doctor to cure our addictions to spending. Ron Paul is a doctor.

  • ryanshaunkelly

    the dirty secrets are out

  • wetweasel56

    “The fact that we are here today to debate raising America’s debt limit is a sign of leadership failure,” the senator thundered. “Increasing America’s debt weakens us domestically and internationally. …Washington is shifting the burden of bad choices today onto the backs of our children and grandchildren.”
    -Senator Barack Obama, March 16, 2006

  • ksuein99

    If Ron Paul doesn’t win in 2012… I’m out of here….sick of this shit

  • councilmandoug808

    Dammit I just made it 421 likes.

  • councilmandoug808

    AWESOME 420 Likes!LOL

  • ryan5439

    I’ve been obsessed with playing simulation games all my life…. Usually when i would have to raise the limit in which i could burrow…the interest alone killed me in the long run. but at the start (just like now with us economy) i would usually pay about 10-20% debt back. after about 1 year i was at 60% loss. and a year i was at 100% loss.

    But i could just restart. Were in some trouble here i think.