Ron Paul: I’m Surprised AAA Downgrade Didn’t Happen A Lot Sooner




Transcript

The Fox News Channel special presentation… On the Brink, Answers From the Abyss, now Neil Cavuto.

Neil Cavuto: France is ahead of us, actually as of last night, more than a dozen countries are ahead of us, because for the first time in 70 years, the United States of America is no longer the top financial dog on earth. The investment ratings agency standard board is taking care of that yesterday, officially dinging our top notch AAA rating and kicking us out of the very elite club, that includes the likes of France, Germany, Switzerland, Australia but not us, not now. We are in with Belgium and New Zealand now and just getting our arms around that one not proving easy now, for years, top of the heap, now all but kicked to the curb, and growing fears my friends come Monday morning, we are going to get kicked in the markets, we just don’t know.

Here is what we do know, after all of the spending, the world is essentially telling us we are spent, and the jig is up and the pain could be severe, and we are all over the fallout that could be swift, with the likes of presidential candidates Michele Bachmann, Ron Paul and Herman Cain who say that the spending has got to stop. Democratic Congressman Dennis Kucinich who says that the spending has actually got to double, and Mark Zandi who says both Republicans and Democrats got to talk.

But before that, first this, the latest what’s happening right now. Georgia Republican Jack Kingston calling on Congress to reconvene immediately to pass a new deal with more cuts in the wake of the downgrade, the Congressman will be here later this hour. China taking a shot at us wasting no time saying and I quote “The good old days of borrowing are over.”

In Europe, G7 finance ministers will meet this weekend to discuss the impact of the downgrade and the Dow losing 700 points this week and that was before the S&P announcement. Saudi Arabia the first market on earth to trade since this news and it wasn’t pretty, stocks there down about 5.5%, banking issues in particular getting clobbered. The problem here is not the downgrade, it’s the debt that brought it on, a message it seems to getting lost in this drama, but now with my next guest Republican Presidential candidate Ron Paul on the phone. Congressman you weren’t at all surprised, but what now?

Ron Paul: Well it looks like we’re in for big trouble because we haven’t dealt with the problem, you know I’m surprised it took them so long to downgrade, I didn’t think it should have had that rating for a long, long time, but people are coming around to reality. You wonder about S&P because they’re usually pretty slow, so I think it’s very, very bad and it’s interesting that when we were working on raising the debt limit over my objection, they can say “Well if you don’t raise the debt limit, we’re going to downgrade you” so we raised the debt limit so they downgrade which means that the spending is not under control. But the other thing that bothers me is I read where S&P said that one of the reasons they downgraded was that we weren’t accepting tax increases. So there’s a lot of confused economic ideas out there but I think we’re in for a lot of trouble which is what is what I’ve been saying for a long time.

Neil Cavuto: You know the administration is already pointing fingers at S&P that their math is a little specious and it could be a case of accusing the accused, but what do you make of that?

Ron Paul: You mean about the treasury saying well they’ve made a mistake…

Neil Cavuto: Right… in other words this is kind of S&P’s fault.

Ron Paul: Well, the Congress is making even bigger mistakes because they keep talking about slashing and cutting and all this, but there have been no suggestions of cutting anything. It’s always the cutting from the baseline which is a steady increase and finally the people who are looking at the bonds are realizing it. But to me it’s interesting that although they’re downgrading it, still the world are buying our treasury bills and our bonds and our interest rates [remain low]…

Neil Cavuto: For now, but Congressman, we got to be careful. I guess what I’m asking is, we are concerned about the downgrade and whether it’s going to cost us more just for people to buy our debt and our notes and our bonds and you’re quite right to point out that people have still been pouncing on our securities as good havens. But how long do you really think that will be the case, and are we really more benefiting because the rest of the world just stinks more than we do.

Ron Paul: Yeah, I think that though the market is more powerful than the agencies who grade the bonds and even Congress. Economic laws are powerful which means that if you follow free market economics, interest rates will go up regardless of bond ratings and this might be just the incentive to start the rates going up again. But there’s no way in the world that you can print money endlessly and bailout everybody and spend endlessly and not expect the dollar to be devalued as it is, and it’s a worldwide currency and that’s why this is so serious. Under those conditions, you depreciate the currency, interest rates are destined to go up, it’s just a matter of time.

Neil Cavuto: Alright, when I was in your fine city this past week and you guys cobbled together this deal of which you were very, very critical, as is your son the Senator Rand Paul, the issue came up that if you guys were to cut too much – not you and your son – but if you would have cut too much it would be onerous to the economy at this iffy stage, so is there even going to be an appetite for cutting more spending in this environment?

Ron Paul: No, there isn’t, there is always a special interest that comes up. If you even suggest freezing the budget, that is considered a cut. Freezing the budget is a cut and anybody who has their budget frozen yells and screams. Can you imagine what the military industrial complex would say if you suggested freezing? They’re getting a percentage increase and it’s not enough and that’s the way with every entitlement program there is, so we’re locked in on this course and until we revamp the system entirely, the monetary system, the entitlement notion, the definition of entitlements versus rights, our foreign policy, believe me, within the next year or two, we will be dealing with what kind of country we want in the future and what economic policies we’re going to follow.

Neil Cavuto: You know it’s interesting, I guess it is hard to gauge right now Congressman, but a downgrade could lead to a lot of messier things but we’ll have to watch extremely closely. Congressman, thank you very much, always good seeing you.

Ron Paul: Thank you.

Neil Cavuto: Again to outline that deal that was the source of some of this concern and maybe S&P jumping here. This $2.1 trillion debt deal you hear so much about, it’s $2.1 trillion over 10 years but 70% of those cuts come after the year 2017, $28 billion over the next year hence this criticism by the part of S&P that it really wasn’t much better than the paper it was printed on. Anyway, the stunner from the White House this morning is no word from the White House this morning.

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299 Comments:

  1. HAHA its funny how that anchor says FRANCE is aheahd of us as his opening statement. New Zeland should also be ahead

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  2. HAHA its funny how that anchor says FRANCE is aheahd of us as his opening statement. New Zeland should also be ahead

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  3. Plutocratic Aristocracy = Congress

    Can you say " Congressional Term Limits" , recall congress and repeal debt deal, freeze congressional salaries,rebudget spending by reducing their pay first and begin rewriting legislation. increase Fair Trade import tariffs to make up for reduced revenue, reduce spending

    Taxation without Repesentation = Violation of the constitution

    Here is the exact definition of any politician within the beltway:

    Plutocracy is a reference to a disproportionate influence the wealthy have on political process in contemporary society:

    By example, according to Kevin Phillips, author and political strategist to U.S. President Richard Nixon, the United States is a plutocracy in which there is a "fusion of money and government."[1]

    The wealthy minority exerts influence over the political arena via many methods. Most western democracies permit partisan organizations to raise funds for politicians, and political parties frequently accept significant donations from various individuals (either directly or through corporations or advocacy groups). These donations may be part of a cronyist or patronage system, in which major contributors and fund-raisers are rewarded with high-ranking government appointments. While campaign donations need not directly affect the legislative decisions of elected representatives, politicians have a personal interest in serving the needs of their campaign contributors: if they fail to do so, those contributors will likely give their money to candidates who do support their interests in the future. Unless a quid pro quo agreement exists, it is generally legal for politicians to advocate policies favorable to their contributors, or grant appointed government positions to them. In some instances, extremely wealthy individuals have financed their own political campaigns. Many corporations and business interest groups pay lobbyists to maintain constant contact with elected officials, and press them for favorable legislation. Owners of mass media outlets, and the advertisement buyers which financially support them can shape public perception of political issues by controlling the information available to the population and the manner in which it is presented (see also: fourth estate). Within government bureaucracy, there is often the problem of a revolving door: the employees of government regulatory bodies, such as the Securities and Exchange Commission in the United States, often transition to and from employment with the same companies they are supposed to regulate. This can result in regulations being changed or ignored to suit the needs of business, since the regulators are more likely to later find employment in the private sector if their government work was beneficial to their new potential employer.

    Ron Paul is looking better every day in the next election!!!!!

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  4. At 1:47 is obama acting or is he really that humiliated. So much can happen in one day. And SuperCongress = SuperBug. Geez maybe we could start off with keeping those campaign promises of bringing the troops home, mr. barack. Then we could bring them all home; instantly retain roughly 20% of our revenue/budget, and have staved off this whole fiscal disaster, right? Hats off to Fox News for a great report. RON PAUL 2012

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  5. At 1:47 is obama acting or is he really that humiliated. So much can happen in one day. And SuperCongress = SuperBug. Geez maybe we could start off with keeping those campaign promises of bringing the troops home, mr. barack. Then we could bring them all home; instantly retain roughly 20% of our revenue/budget, and have staved off this whole fiscal disaster, right? Hats off to Fox News for a great report. RON PAUL 2012

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  6. For me, the so called 'economy' does not make sense at all, what is it really?

    I think it's supposed to be composed of markets, assets of different types, and people that do commerce, or trade for some kind of benefit. The mechanism of exchange was improved by using 'currencies' and extending the international markets.

    There are several variables in this system, and one of those is people, which happen to be what the system is set for and runs it. Another variable are natural resources, or developed resources (including inventions).

    How is it that a system with important variable components can have a fixed number of what permits the activity of the system? and without causing awful problems?

    The population growths, the resources are either found or developed, the economy should expand accordingly. Even is something new and valuable enters a limited system it will be devaluated rather quickly.

    So, it does not make sense, even when you assume no corruption at all. So it looks like currency and amount in circulation should accomodate the variables to yield a viable steady state.

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  7. CHINA AND RUSSIA JOIN FORCES TO TAKE OUT THE DOLLAR THAT THE BIGGEST TROUBLE EVER

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  8. CHINA AND RUSSIA JOIN FORCES TO TAKE OUT THE DOLLAR THAT THE BIGGEST TROUBLE EVER

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  9. americanbulldog69

    the guy walkin in the back ground had to be set up by fox..

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  10. I just got booted off the Tea Party website forever..For backing Ron Paul!!!They have sold out and are traders to the man that started that whole thing!!They now think FAUX news is there leader!!The only bad part of this,is the TP has there voice in many diffrent ears..FOR ALL YOU RON PAUL SUPPORTERS,GO TO TEAPARTYPATRIOTS.ORG AND LET THEM KNOW YOU SUPPORT DR PAUL AND NO OTHER!!!!!!This is a fight ladies and gentlemen..Without our full dedication to this,we can KISS our country good bye..All Parents and Grandparents,need to get into this fight,for youe kids sake!!!

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  11. The reason he'll never have a chance is because he is not "bought and sold". The news networks, including Fox, would never give him a fair chance. And let us be honest, whoever it is that tells the talking heads what to say, is who decides the next president.

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  12. From our forefathers , For our children , The voice of RON PAUL is !

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  13. Cavuto has been having Ron Paul on a lot lately as the go-to guy for the biggest news stories.

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  14. obama well drive us all over the cliff, he's so far to the left a idea with conservative tone is just to much for he to deal with, it's my way or the highway, and his way is over a big cliff. I FEEL THERE SOMETHING MORE GOING ON? IS THERE MORE WORKING ON THE DARKSIDE? IT SEEMS TO MADE UP, WHY HAS OBAMA REFUSED WAYS OUT. COULD IT BE THE WORK OF THE SPOOKED DUDE WORKING OBAMA LIKE HE HAD A HAND UP HIS ASS

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  15. Everyone needs to start NOW about getting the word out there about Ron Paul. Fuck all of these other politicians in Washington. They don't care about the people and have proven this that even a blind person could see it.

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  16. everynameipickisunav

    A financially responsible person never worries about their credit as they do not need to use credit. So what is wrong with America?

    I guess I should follow my governments example and go buy a 7 series bmw to drive instead of saving and driving a 23 year old car. Spending and borrowing might be the best way. My savings keeps getting devalued by the fed and at the end of the day I am still broke and never owned a 7 series.

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  17. emanuelfonseca123

    But why america keep thinking that is the leader ?
    Return to earth! You are no more the leader o earth, you re triple AAA was supposed to be downgraded in 2008 but it wasnt and why? Because SP is american so STOP be pussy

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  18. everynameipickisunav

    A financially responsible person never worries about a credit rating as they never need to use credit. So why does America worry about a credit rating?

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  19. Telling the gov't to spend less than it brings in..That's crazy talk!! Instead running a 1.5 trillion deficit annually is logical????? Alright liberals you make too much sense..

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  20. THEONETHEONLYEM21

    uw is going to default and so will europe

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