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


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.

  • AlphaSigma

    To bad the tea party has been compromised by the establishment of the republican party and Fox news. the tea party of 2007 is totally different from the tea party of today. the tea party of today have become more social than fiscal you could tell by the way thy are flocking to Rep. Bachmann and others, so to me there’s a tale of two Tea party’s the original 2007 party who is 1.Constitutional 2. Fiscal 3. social. Tea party of today is more 2. fiscal 3.constitutional.

  • toolband79

    Do your country a favor and vote Rob Paul

  • mjweave2

    Ron Paul is a Republican?


  • green727

    I like how he actually talks about the problem and how to start fixing it instead of blaming it on other people…

  • JeasusBigBalls

    As Europeans we hope all Americans see through the propaganda for the falsified wars which are killing thousands of you every year and vote Ron Paul, He’s not just Americas best hope but the worlds.. Ron Paul Europe is with you.

  • ubertuber3d

    Ron Paul, the consitutionalist that doesn’t believe in seperation of church and state! wait? what… He’s just making up bullshit to get into office, vote Obama, he’s an ok president, looks amazing next to all these ass clowns.

  • canadathestrong

    I don’t understand how your closest ally and largest trading partner.. wasn’t mentioned as having a AAA rating..


  • sonebezi

    Dr Paul I will see you Saturday! I will be the guy from texas black ron paul shirt, handing out slim jims!

    The Revo(t)lution is coming!

  • claton95

    Ron Paul needs to be arrested and executed for treason.

    • Libertarian777

      And what is the charge? Oh wait u believe the executive branch has the right to order the assassination of us citizens, detention without charge and war without declaration.

      Actually you are correct about the treason part.
      He speaks the truth.
      And we all know, TRUTH is treason in the empire of lies.

  • KillBaddBugz

    hey fox you are dripping with nobody-nothing-never-done-any-thing-on-utube-icon-less bloody trolls and instigating shills– I need it not. So best of luck. btw are u sure r. murcoch isn’t still here in the shadows running the show?? I am done commenting on your stuff–I don’t really need that spam shit in my spammboxx Fare Well.

  • tom

    ron paul has forgotten more about economics and monetary policy than most of all the other candidates know combined. i hope this totally unexpected downgarde will start to wake some people up. i had a big ron paul magnet on my truck, but some asshole took it.

  • Roacheater

    Thank God for Texas………

  • Douglas

    It is very constitutionally obvious, simply issue new dollars into circulation ‘under contracts’ that will create jobs and expand the ‘US’ economy as needed. This is what the original US constitution made provisions for. Why is it so hard for everyone to understand this? It is hard to make sense of such a Natural process after CFR took the reins and create a force grown Global Economy. All the evidence we need is before US to be properly hashed out within Congressional processes. There is no need for US to riot in the streets like animals. As a matter of fact, I think that’s exactly what they want US to do so they can round US up or pick US off. It goes deeper but I do not want to get off the subject.

    This process of US monetary policy has taken over by private groups. We do not need private banks or a private central bank, all we need is constitutional monetary policy. The Congress only needs to listen to their constituents and issues currency based on their needs and the vote of all the States involved within that currency, and it works.

    Yes, a National Currency has many advantages but I urge you to research colonial currencies so you might see why the US Revolution Started.

    It is hard to deal with the fact that so many millions of people have been (internationally) used and abused by unconstitutional monetary policy. But we should not let this stop US for making things right and doing this thru a civilized manner.

    Rioting in the streets is not going to give US Constitutional Monetary Policy. Electing political officials (someone like Ron Paul) who understands constitutional monetary policy will. Yes, I understand that the Elite live in another world and feel that they are untouchable. But, they do make mistakes and history proves that these mistakes are catastrophic. So, they may set themselves aside, but they are hardly at all in control of what is going to happen. This is the weakness we must take advantage of.

    What is important is that we hold onto what is sacred to US and not let the chaos of their system disable US. We must be smarter than them by knowing that they use their powers of deception to overcome US. This power they have does not make them more intelligent than US; it just shows how they are a bunch of two faced back stabbers that have set themselves aside as the Elite.

    It is very hard for me to explain everything I know without losing you into some level of reality that you may not be ready to comprehend. What is important is that we stick too and fulfill the Constitution of The United States of America. Of which I feel we still have one hurdle to overcome, which is, ‘Constitutional Monetary Policy’.

    • JOHN

      I agree with you that constitutional U.S.Notes are what America really needs.If America printed it’s own money there would be NO National Debt and NO Interest on the National Debt.If only Ron Paul could hookup with Stephen Zarlenga from AMI this country would be delivered from all it’s economic ills .Please see for more info.

  • brentpal

    this will only help Ron Paul this is what he has been talking about for YEARS now and both the traditional republicans and the democrats have said without the bailouts and cap raising would have put us in this exact situation. after the bailouts that was to prevent a depression we are now in a depression infact this wouldn’t be nearly as bad if we would have let them go bankrupt. now with the raise it brought a downgrade when they said it would do the opposite wake up and vote for RON PAUL!!!


    When I work, I work hard/do the best I can. and appreciate good pay! even if it’s a cheap wage! I want my pay to hold it’s value! Ron Paul! So the question is who Get’s defaulted on? the price of bread doubled, who raised? the farmers? bakers? grocery clerk? military industrial complex? we should have just a “regular military” not police the word,… yep! seems like a good example

  • Chris I

    Neil Cavuto – you’re a douche bag and nothing but a talking pawn for FOX News. You provide no clear, concise explanation for the problem other than to smear Dennis Kucinich for saying we need to be spending more. How about you, for once Neil, take on the REAL damned problem of our corrupt, bloated, overextended military complex and foreign policy. I have NO respect for any GOP candidate that does not believe in crushing this complex. Paul is the ONLY one I know of with such a vision. He should boycott FOX News already; people that watch that crap are nothing but simpletons and mindless dopes that can’t make up their own minds.

    • Allison

      I’ll second that, Chris. Ron Paul gets no respect from FOX because they know the intellectual level of their viewers. Most of them couldn’t find the cheese in a rat maze, let alone comprehend monetary, domestic, and foreign policy, or debate issues such as the PATRIOT Act, TSA, the War on Drugs, war, campaign reform and Washington reform. I want to see and hear more of Dr. Paul on Truth-Out, Democracy Now, MSNBC, CNN, and sites dedicated to him like this one. I would kill for an opportunity to ask Dr. Paul some real hard questions that the MSM are too pu$$y to ask him for fear of retribution from their corporate keyholders.

  • Anthony

    I have noticed in my area signs are starting to go up,in support of Ron Paul..But we need MUCH MORE of this..Its easy people,you can go BIG or just something simple,like cardboard and a staple gun..

  • Anthony

    Ron Pauls ideas are starting to sink in,on the left and the right..Makes me smile.All Ron Paul supporters get behind him even more.Its nice that you post here,BUT also post on every main stream media source that you can..In support of Ron Paul..Encourage peopel on the web and in your real life to support this site and Ron Paul!!We need this man!!!America is on life support,ACT NOW!!!

  • sfiorare

    oh look, more hyperbole from fox news

  • SeraphimTheApologist

    This downgrade is not a surprise at all, when we warned this would happen if we raised the debt ceiling they called us crazy and threatened us with default, now that it’s happened like we said it would they blame us…