Ron Paul: I Trust the Markets Much More than the Rating Agencies





Male News Anchor: Well, my next guest voted no to raising the debt ceiling, and says out of control spending is to blame for the downgrade. Republican presidential candidate, Congressman Ron Paul, joins me. And, of course, Lisa, now, from Clute, Texas. Congressman, thank you for joining us tonight.

Ron Paul: Nice to be with you.

Male News Anchor: You know, I have to ask you, when you listen to the S&P comments, and as well from John Chambers, the concern is about partisan politics. You are no stranger to partisan politics. Is it possible that some of your politics is frankly how we got here in the first place?

Ron Paul: Yeah, I think it is, and it is rather strange, because at one time, S&P was way behind the curve, and now they seem to be a little bit ahead. But I think we’ve had a problem for so long, and I trust the markets much more than these agencies to do the grading of the bonds. Matter of fact, it’s strange also, because there’s still a lot of people buying our treasury bills. And in relationship to other currencies, our dollar holds its own.

But what I watch and what I think is more significant long term, is the relationship of our dollar to gold, because gold is the only thing that really measures long term value of a currency. So I think what they’re saying in the market today is no, we’re not going to default, we’re going to pay our bills and we’re going to pay the treasury bills and we’ll pay the interest. But what they’re saying is, the money is going to get cheap, the prices are going to go up, and we’re going to have a lot of inflation. I think that’s what the markets are saying and I think that’s what our votes said before. And this is what I predicted all along; there was no way they were going to quit sending the checks out to Social Security recipients or to the bond holders, but they’re going to send money out that has a lot less value, and that to me is more dangerous.

Female News Anchor: I just want to break in here because I think it’s agreed that no one thinks that the U.S. would ultimately default on its debt, not even as we approached that August 2nd deadline. However, there are a lot of questions about when do we get our country, the economy, back on tract, when do we get our fiscal house in order. And there are really not that many places to go with monetary policy, and I think that was what was manifesting itself in the stock market today.

Ron Paul: Yeah, it is true. We’ll wait and see what Bernanke says tomorrow. His only tool is printing more money and now we’re back to square one, we’re back to where we were when he started the QE2. But I think the default is inevitable, it’s just the way we default. We’ve defaulted many times over our history, when you think about how they refused to pay the gold in the 1930s and in 1971 to foreigners.

Male News Anchor: I’m sorry, I have to interrupt you. You just said default is inevitable, the United States defaulting is inevitable? Did I hear you right?

Ron Paul: Yeah, but you got to understand my definition of default. If you give me a dollar and I give you a dollar back in a year and it buys 20 cents, I’ve defaulted. The government defaults, they’ve cheated, they’ve taken 80% of your money. That’s the way all governments default. So when the debt gets this high and once you borrow more than 40% of your budget, I mean, it can’t be sustained. So the tinkering around with budgets and pretending they’re going to cut, nobody believes that, because they’re not cuts, they’re cuts on proposed increases.

And today, it was so discouraging because Obama was supposed to be a little bit more reluctant to go to these many wars that we’re involved, but one thing he did, he made a big emphasis to protect the military-industrial complex: “We cannot back off on that.” So the spending is going to continue, the entitlements will continue, the military spending is going to continue, but the dollar is going to lose value against goods and services and it’s already started.

Male News Anchor: Alright, Ron Paul, let me ask you, in less than a minute, it’s a tough challenge, in less than a minute, give us 2, maybe 3 bullet points, a plan, what can we do to fix this thing?

Ron Paul: Well, you can’t do anything unless you let the liquidation occur. We have prevented it in the 1930s, the Japanese prevented it, and these last 4 years we have prevented it. You have to allow the liquidation of debt and the malinvestment. You can’t have growth if you’re trying to build it on a stash of debt. So there’s been no liquidation of debt, so you have to liquidate it one way or the other. But right now, you should allow bankruptcies, no more bailouts, no more printing press money; let the market work its way out, and then you will get back to square one and you can have growth again.

Otherwise, you’re just going to delay this for days and weeks and months and years; who knows, it could be another decade. Look how long Japan has been going through this. They did not liquidate the bad debt, we’re not doing it either, we haven’t learnt a lesson in many, many years.

Male News Anchor: Alright, Representative Ron Paul from Texas, thank you for joining us.



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157 Comments:

  1. What a load of nonsence, Ron Paul has always been against violence and the military. When did he ever want geneocide? That's total rubbish. Ron Paul is America's best chance for the next 4 years, and deserves every vote.

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  2. For the sake of the rest of the world and your own: get this guy in the oval office!

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  3. I figured that, but it seems you also missed the part of Dr. Pauls' speech where he said he knew what was happening in that room was ILLEGAL. Ive watched his entire speech a couple of times now, so Im SURE of what he said. So, had he made that bold move to at least TRY to save that innocent life, that wouldve been LEGAL & nothing couldve been easier than walking a few steps to the ICU. In fact, he probably woujldve been a National Hero the next day in the media. He just failed to act.

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  4. Sorry missed the intern part in the first comment. I don't know how easy or legal it would of been for him though honestly. Taking stewardship of a child who was just legally murdered would be a much more complex situation than you are making it out to be, and would take much research to answer on its legality. Letting the baby die in the trash can was immoral but it was legal. It would of at the very least ended his medical career very early.

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  5. One reason for that "could" be Dr. Pauls' appearance & demeanor. I dont mean this as poke at him, but he looks & sounds more like a wise, experienced, older Dr.(which Im sure he is) than a President. He doesnt come across as an Authority figure. Just one possible answer to your question.

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  6. I mentioned Dr. Pauls' intern status earlier. Thats exactly what makes this a CLASSIC test of Character. Dr. Paul says he KNEW letting that baby die crying in a trash can was illegal, yet he stood by and watched the Murder. He VERY easily & LEGALLY couldve picked that baby up and walked to the ICU. To suggest that he did nothing because "hey, thats just the way its done" is a test of Character Vs Authority. Intern Paul failed that test horribly, AND has never apologized.

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  7. He said specifically in the speech in Ames at the straw poll that incident happened when he was only a student observing. A student just coming in can't exactly do what your asking of him. I was there I remember it well. (the speech not the abortion)

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  8. Why does ron paul reject science? Is it to cater to the religious right and his corporate "free market" sponsors? He called climate change a hoax and rejects the "theory" of evolution. How do his supporters expect him to lead us into the future while he rejects that science that describes the present? rp has some good ideas but he's way too far from reality on too many! No thanks AGAIN rp.

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  9. 'Did I hear you right?'; Yes you lying bamboozling sack of excrement, now ponder your deceitful existence and stop brainwashing people.

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  10. hes a deciever....hes playing the good guy part...dont be dumb people come on...obama did the same thing with the change sayin...now ron paul is playing the good guy when in 06 he wanted genocide on half the world

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  11. bullshit ron paul is a mason and is in the same circle as the nwo...dont be fooled man

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  12. "In 2004 GE bought 80% of Universal Pictures from Vivendi. Vivendi bought 20% of NBC forming the company NBCUniversal. GE then owned 80% of NBCUniversal and Vivendi owned 20%. As of January 28, 2011 GE owns 49% and Comcast 51%." Thanks for the thumbs up! Everyone, do a google search on General Electric. Also google who owns CNN and ABC. I always knew the mainstream media was censored, but now I know why... just look at who owns the freaking television networks! Ron Paul 2012 :(

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  13. "In 2004 GE bought 80% of Universal Pictures from Vivendi. Vivendi bought 20% of NBC forming the company NBCUniversal. GE then owned 80% of NBCUniversal and Vivendi owned 20%. As of January 28, 2011 GE owns 49% and Comcast 51%." Thanks for the thumbs up! Everyone, do a google search on General Electric. Also google who owns CNN and ABC. I always knew the mainstream media was censored, but now I know why... just look at who owns the freaking television networks! Ron Paul 2012 :(

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  14. SIGN THE PETITION TO GET RON PAUL FEATURED ON 60 MINUTES!

    GOOGLE = CBS NEWS 60 MINUTES PETITION

    THUMBS UP! KEEP THIS MESSAGE AT THE TOP!

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  15. SIGN THE PETITION TO GET RON PAUL FEATURED ON 60 MINUTES!

    GOOGLE = CBS NEWS 60 MINUTES PETITION

    THUMBS UP! KEEP THIS MESSAGE AT THE TOP!

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  16. To all of Dr Paul's supporters..PLEASE take a lesson from him and stop using personal attacks and vulgarity against the opposition. It just makes you sound ignorant and does nothing to further the cause of liberty. Be civil.

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  17. "I'm happy to tell you there is very little in this world that I believe in."
    — George Carlin

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  18. "I'm happy to tell you there is very little in this world that I believe in."
    — George Carlin

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  19. BITCHES ASK BEFORE THEY SPEAK AROUND RON MOTHER FUCKIN PAUL

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  20. this man is the only one with balls to (finally) say what was needed for decades... do NOT allow govt. to STOP liquidation and the free markets. Do not allow govt. to THINK for you/me/us...we are NOT a bunch of morons that sit idle with our pie holes wide open waiting for instructions from the overlords in D.C. We can make our own decisions and not wind up dead in a ditch. No...really, we can (unless you are a liberal of course.)

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