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

Transcript

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…

  • blsdmf777

    Just freeze the budget and give everybody what they got last year …..so simple and it would finally balance sooner than later !!!!!! Well put President Paul well put !!!!!

    Like or Dislike: Thumb up 5 Thumb down 0

  • Titus

    If Dr. Paul would be addressing a group of medical students, he would explain to them our “condition” something like this:
    What you see here is gangrene. The tourniquet is a temporary measure till the preparation for surgery. Moving the tourniquet further up would mean bigger cuts later or we may not be able to save the patient at all.

    Like or Dislike: Thumb up 7 Thumb down 0

  • AnonymousEconomist

    Ron Paul knows what a neocon is, and he knows that the insane foreign policy of the Republican and Democratic neocons is not in the interest of the US. The neocons want cuts in Social Security and Medicare to finance unnecessary wars on the back of the American middle-class. Paul is for cuts in all of the above. In fact, he wants to eliminate them. Paul’s wrong there, but he might turn out to be right on the gold standard. Gold could be the salvation of America.

    Like or Dislike: Thumb up 0 Thumb down 0

  • TorontoSportsNetwork

    To put Ron Paul in the White House we NEED to get him more well known, he is a great person on the Internet but no media will EVER put him in the news, unless it is obviously negative attention. It is atrocious that liberty cannot be met.

    Like or Dislike: Thumb up 3 Thumb down 0

  • SHEEPLEwhisperer

    Throw the Bankers down the well, so my people can be freeeee, and we have a big party.

    Like or Dislike: Thumb up 1 Thumb down 0

  • SaraConr

    By “freeze” does he mean the total budget? I.E. Congressional salaries, pentagon contractors, home state projects, etc?

    Like or Dislike: Thumb up 1 Thumb down 0

  • kulan2

    Ron Paul is acting like a fool. He knows what the system is really about but is not playing by the rules. All he has to do is make the deal and gain massive political support so that he can make spending cuts later. Instead he seems resolute in weakening conservative America. He is in a position to over see huge change in America. His policies are not much different to the Presidents. We know it is a show but your supposed to participate.

    Like or Dislike: Thumb up 0 Thumb down 19

  • Stepper11

    Ron Paul is a national treasure. Too bad .Most of the people are morons and can’t understand his 2+2=4 logic

    Highly rated. What do you think? Thumb up 14 Thumb down 0

  • motonegros

    I don’t know why Dr.Paul is even on this show with this slimy, lying scumbag Kudlow.

    Kudlow is the epitome of whats wrong with American media today.

    Like or Dislike: Thumb up 1 Thumb down 1

  • Dano853

    Its amazing that I only hear from Ron Paul what no one else is willing to say.

    Like or Dislike: Thumb up 4 Thumb down 0

  • YoungnRomantic

    Ron Paul gets it. Borrowing more money to pay off the debt that u already have to pay down the debt u already have. This guiy has to win the President this time. If he doesn’t, we’re fucked.

    Like or Dislike: Thumb up 2 Thumb down 0

  • MrTas76548

    Thus another reason to vote for Ron paul in 2012,Common Sense,Common spendingUnlike Obama

    Like or Dislike: Thumb up 4 Thumb down 0

  • hiyukenmusic

    Issues Separated
    1. Money
    Our current system creates compound interest debt and not money. If one has accumulated enough lending capital to offset inflation and spending it’s a good thing for everyone else it’s bad.

    2. Debt
    Our current debt should be defaulted on for the simple reason, I don’t remember signing a promissory note.

    3. Government Services.
    Government services can be paid once the first is taken care of. What stays and what goes depends on the Constitution and priorities.

    Like or Dislike: Thumb up 3 Thumb down 0

  • hiyukenmusic

    No Mr. Paul, we don’t want to stop spending we want to change the instrument from a debt currency with compound interest to a true monetary system where the Treasury prints money and backs its value with the full faith and credit of the country and not a commodity. In that case, both wars and all else can be paid and instead of creating compound interest it will create inflation. The other discussion AFTER that is about the constitutionality of those programs but paying for it is easy.

    Like or Dislike: Thumb up 2 Thumb down 0

  • x6mj

    taxes r just away to get back some of the money we gave to the rich. I say fuck that, quit giving the rich money all together. those lazy fucks want to whine about us demanding some of our money back? we should never have giving it to them in the first place. Fuck the irch, if u want to earn get a job. End corporatism, end the fed, rebuild the american economy. Capitalism is getting the most out of u’re money, product, or services. Not giving lazy fucks more and more money.

    Like or Dislike: Thumb up 0 Thumb down 2

  • JimFariello

    Curly (Obama), Larry (Boehner) and Moe (Reid) have no clue. Stop all spending on foreign aid (57 Billion), cut all budgets by 10%, close tax holes that let GE that earned 14 billion last year and paid zero in taxes, cut all benefits to illegals, end the three wars and close the 1,000 bases around the world. End giving 400 million to Islamic countries to build mosques. They do not not believe in freedom of religion. The list goes on you three stooges and America remembers in 2010, recycle them.

    Like or Dislike: Thumb up 1 Thumb down 0

  • nvsyru

    If you are as sick and tired of inflated prices of food, gasoline and other needed goods, then please understand that once government approves inflating the deficit with more money created from thin air, more inflation will follow. This is economic law and is indisputable. Ron understands this and is trying to help US to understand it as well.

    I carry a 1923 silver dollar, a 1971 counterfeit dollar, and a new “Golden” dollar coin to show and educate people on how our dollar has been devalued!

    Like or Dislike: Thumb up 1 Thumb down 0

  • jstorm73

    real easy cut defense and cut off the wealthies 5% of Americans from collecting Social security and medicare. Cut off all people under 40 years today. they have 20 years to plan. Since Ronald Regan is the icon of conservative and less taxes go back to his rates – a boatload of new revenue will come in. Gut our present rip-off healthcare system that is sodimizing the nation and rebuild it from scratch. We love India so much and ship off all of our work to it so bring their health care in.

    Like or Dislike: Thumb up 0 Thumb down 1

    • CK

      That’s what the problem is they keep trying to RAISE TAXES and it kills growth.The govt. doesn’t produce anything but debt and jobkilling regulation. STOP taxing the producers,start collecting from the NON-producers .FAIRTAX !

      Like or Dislike: Thumb up 1 Thumb down 0

  • TommyTurntables1

    So when is Ron Paul going to END the FED???

    Like or Dislike: Thumb up 0 Thumb down 0

  • tapanisiirtola

    I’m actually scared and terrified of interviewers questions. How can anyone defend of getting more debt? Luckily he said that he agrees with Paul in the end.

    Like or Dislike: Thumb up 1 Thumb down 0