Ron Paul: Debt Deal is a ‘Fraud’


Ashley Martella: We’re pleased to have with us on the line now, Texas U.S. Representative and GOP presidential candidate, Ron Paul. He was one of 5 Republicans from the Texas congressional delegation to vote against the so-called Budget Control Act of 2011, which is the debt ceiling increase. Thanks for joining us, sir.

Ron Paul: Thank you, good to be with you.

Ashley Martella: You write on the Hill’s Congress Blog, that there were no real cuts in the legislation, only cuts in projected spending increases. Please explain briefly.

Ron Paul: This is one of the most annoying things about the reporting on what we’ve been trying to do in Washington and what we pretend to be doing. They’re always talking about cuts, cuts, cuts and everybody is screaming, “You can’t cut this, you can’t cut that”. But there are no cuts, there’s a baseline CBO projection that automatically goes up year after year after year. And what they’re talking about is just cutting some of these proposed increases. So it’s a real misleading definition when they talk about cuts. If you had a cut, you would actually have to cut this year. Because anything we do for future years doesn’t hold water anyway, because you can’t tell the next Congress what to do. So it’s basically a fraud.

If they were serious about it and wanted to do it and make a point of changing the way we operate, they could freeze the budget and give everybody the same amount of money they got last year, and that would be, according to the way they calculate, a big cut, because we would be cutting all the proposed increases for the next years to come.

Ashley Martella: Well, you say if we were to go back to 2004 spending levels, we would have a balanced budget right now. Please crunch the numbers for us a bit.

Ron Paul: That is, 2004 would give us enough money to balance the budget right now, that’s like 2.4 trillion dollars. And even now if you freeze the budget, within about 5 years it would be balanced again. But nobody’s quite willing to do that because they think they have to have steady increases. But there’s a strong appetite for government and that is where the problem is. People don’t want to cut back on the militarism and the people don’t want to cut back on anything that looks like it might cut into their check they’re getting from government, and you know a lot of people are getting checks from the government.

Ashley Martella: Our budget has doubled in 10 years, you ask why. Why do you think it has?

Ron Paul: The appetite for government never ends, there are more retired people because of the demographics, less people are coming into the workforce, unemployment rates go up, they can’t control that. So the benefits go up automatically. And it’s endless, there’s always new programs; this week, after we passed that budget, there was a new program, brand new program out of thin air to go around the world and tell other countries what they should do about their religious freedom. And it was a small program, but the first year was going to be a million dollars. And I thought, “Well, why are they starting a new program in the midst of this?” But that is only one little program, I mean there are hundreds and hundreds of programs that are brand new and they keep doing it. They just won’t stop, it’s like an addiction. And they don’t stop because I don’t think they even realize the seriousness of how big this problem is.

Ashley Martella: The Tea Party helped elect candidates it thought would vote to end reckless spending by Congress. Yet, most of the Tea Party backed Republicans voted yes on the bill. Where’s the disconnect here?

Ron Paul: Yea, that’s a tough one, because I think the Tea Party people have helped because it has changed the atmosphere and at least they’re talking about this. But then it has to be awfully discouraging for all of us if they’re not voting against these kinds of programs where we raise the national debt and increase this Super Congress. I mean, it’s a real mess. It represents the fact that there are no easy solutions and people realize that when you do cut, there’s a political liability there. The Tea Party people got there because there was political liability to continue the spending. So that has to be ironed out and it will be ironed out pretty soon because we cannot maintain what we’re doing.

Ashley Martella: You expect there to be a backlash by the Tea Party against the Congressmen they backed who voted yes on this deal?

Ron Paul: Yea, I think there will be, but I don’t think it will be quite the same thing that happened last year when so many were routed. And there are going to be so many people who will be disenchanted. They’ll say, “You mean we did it, we worked hard, we changed the Congress, but we didn’t change the votes?” And I don’t know whether you can keep the people up, I think the people are going to get pretty discouraged one way or the other. But I think if things don’t improve and we don’t get our house in order and get control of this budget, I think there will be a lot of people who are saying, “You know, we sent you over there, but you kept voting for more spending”.

Ashley Martella: If Republicans should win back the Senate next year, as many predict, will that change anything regarding reckless spending?

Ron Paul: Let’s hope so, but it’s no guarantee. Just like I was complaining about when George Bush was in charge and we had the Senate and the House, we didn’t do a very good job. Then the battle becomes between the two factions within the Republican Party; you know, the conservatives versus the big spenders in the Republican Party. So you don’t know, it just depends on who shows up into the Senate. But certainly, the way it’s formulated right now, there’s no way that the conservatives can win a fight and have the Senate support it and then have the President sign a bill.

Ashley Martella: You announced a while back that you were retiring from the House after your current term. Why?

Ron Paul: Well, I wanted to concentrate on the race for the presidency. Last time I ran, I did both and it was distracting and I wanted to make sure that people knew I was very, very serious about the presidential run and I was also content to know that I would be, and am ready to leave the Congress too.

Ashley Martella: The latest Gallup polling shows you with 8% ballot support among all Republicans. Now that compares to 17% for Mitt Romney, and 15% for your fellow Texan, Governor Rick Perry, who hasn’t even announced yet at the time we are recording this. How do you get your numbers up?

Ron Paul: Continue to do what I am doing and just more so, because the numbers depend on which poll you look at. They have been improving, but it is not easy. That means we have to continue to campaign, we have to continue to raise money. We have had some TV out, we hope to have a lot more TV out and the numbers certainly will go up if we do well at Ames next week.

Ashley Martella: Texas congressman and Republican presidential candidate, Ron Paul. Thanks so much and good luck on the campaign trail.

Ron Paul: Thank you, good to be with you.

Ashley Martella: And thank you for watching Newsmax TV.

  • MrObenauer

    Those references are just to inspire you to continue, because there is limited information to be found both places, and hopefully you’ll check out what Keynes and Hayek themselves, and not just the two raps that display their perspectives in an easily digestible manner. I read the Constitution and the Declaration of Independence, research the views of the “Founding Fathers,” and it is blatantly obvious that most politicians lack knowledge of the documents of that time. I enjoyed our conversation

  • MrObenauer

    If you’re really interested there are places you can learn things. Check out the LearnLiberty channel for some insight into classical liberalism and some economics, and I recommend checking out the EconStories channel for their Keynes and Hayek raps that outline the differences in the two theories. Also, never take anything at face value research it to make sure you’re not being mislead, and google is my best friend for that because I check things out until I find info from credible sources.

  • MrObenauer

    The reality is that true economic growth isn’t what we were seeing even during the “recovery,” because we think that we can spend our way out of things by fighting wars, but the reality is we can’t and we pay the price in inflation as a result of Congress’ “borrowing.” Check out the “Broken Window Fallacy” because the U.S. has exemplified it more than once, because real growth only comes from production of goods, and government spending shouldn’t be counted in GDP because nothing is produced.


  • MrObenauer

    For things to stabilize interest rates on loans would have to increase to the rate of inflation which is much higher than what is currently being pretended. This would provide some stability, but wouldn’t make the situation much better because interest rates on loans would be high and the dollar might stabilize some, but the reality is that our trade deficit and a polyglot other factors will continue to ravage the economy afterward, and the sad reality is that the we spent our way into this.

  • MrObenauer

    On Bachmann I was struck by many things, and her support of the Patriot Act making me sick to my stomach wasn’t the only thing. As soon as I knew she was running for President I checked out her ads trying to get a feel for her, no substance, just her announcing her candidacy over and over, later on I found other stuff, and her focal point in life seems to be her religion, and don’t get me wrong everyone has faith in something, but devout Christianity doesn’t make you qualified for office alone.

  • MrObenauer

    I choose Paul because I feel he is trustworthy he has a nice voting record that has pro-Constitution written all over it, and he doesn’t foul-up like Cain did when he mentioned “Life, Liberty, and the pursuit of Happiness” being in the Constitution, which it is not, that is most assuredly in the Declaration of Independence, and its importance need not be ignored either, we fought against the British over around 10% taxes and now we pay out a much greater percent.

  • BradNC11175

    There is an option for us there. If Ron Paul is not on the ballot in 2012 all those who support him should write him in if they just can not live with the other options? If he does not get the Republican nomination can he still run as an Independent? I am really pulling for Paul, I have since 07. But I just don’t like the smell of things and I think that by hook or by crook the “powers that be” within the GOP and/or Washington will not permit it. He is all in here, his supporters should be too.

  • damusmoose

    Pally, Pally, hes are man he will leads us to the garbage cans

  • damusmoose

    Cain still fu!! up from Vietnam

  • damusmoose

    1957 – 2011 republicans have been in office 31 yrs. democrats 23 yrs. first stimulus 1957 Eisenhower, wonder what happened. .

  • brownspottedbanana


  • TheEpoxyExpert

    Ron Paul R[̲̅ə̲̅٨̲̅٥̲̅٦̲̅]ution 2012
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  • damusmoose

    Gentlemen this is a porn site

  • bigbadmamajama11

    LOL watch Fox today, they talking about who’s in the so-called lead in the GOP nomination, and Ron Paul name was not even mentioned…… really, really, really Fox….

  • doogleandalix

    Polls are claiming Ron Paul only has 16% of the support in Iowa – I don’t know if I believe Bachmann is in first place but if so we are in trouble. Please post the Ron Paul message on any youtube sites with the words IOWA in the search box to spread his message – I really want him to secure the nomination . We cannot afford 4 more years of the same old,same old. Thanks !

  • damusmoose

    Republicans believe every day is the Fourth of July, but the democrats believe every day is April 15.
    Ronald Reagan

  • skoaile

    ppl need to see that there using our money to control you, if you keep paying them they will keep screwing u, learn to survive on your own grow your own food and find some where to build your roof u dont have much time

  • damusmoose

    Ron Paul isn’t the answer Jeb Bush is

  • ICantDecryptTheCode

    ron paul zombies love big fat cock in their mouths!

  • TheFreedomly

    That’s only the iceberg’s tip for what’s comingabout there, the snow ball debts keep growing on way to them, so they’ll try to cut edge on the expenses, but the bullet of billions dollars were shot, the great technology helicopters of billions dollars headed to kill bad people and good people too. So the giant black hole is swallowing the profits and therefore suddenly bailingout the saving profits.