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News Anchor: Back with us now is Republican presidential candidate and Texas Congressman, Ron Paul, who’s been good enough to stick with us through that commercial break for a couple of more questions. Governor Rick Perry of Texas says he’s done the kinds of things that you advocate doing; getting government out of people’s way. And he says that’s part of the reason that Texas has had so many jobs. What do you think of his entry into the race, and what do you think of his record?
Ron Paul: Well, his record, when you dig into it, is more questionable than most people realize, but somebody else is going to do that after he enters into the race. But he’s getting into the race, I think, doesn’t bother me at all, obviously because he pretty much represents the status quo. And the other candidates, in one way or the other, are part of the status quo. And I represent something different, I represent the faction that emphasis personal liberty and a non-interventionist foreign policy, getting rid of the Fed. The rest aren’t quite in that area. So he comes in and he dilutes that vote. So yes, he’ll pick up a lot of votes, but I doubt very much if he’s going to pick up any of the Ron Paul votes.
News Anchor: Talking about the Fed, Sheila Coffman wants to know, “How would our currency be controlled, if not by the Federal Reserve?”
Ron Paul: Well, like it was before the Federal Reserve, and they did a reasonably good job, even though they abused the gold standard all the time. You don’t need government to control the money supply, the money supply is controlled by the people, it is controlled by the banks, it is not controlled by somebody at a computer who decides, “This week we need 5 billion dollars”. But during the crisis they pumped in 15 trillion dollars and manipulated that and gave it to foreign central banks. There is a monstrous amount of damage that’s done by our Federal Reserve, they create the financial bubbles and therefore they create the inevitable recessions and depressions and they cause the inflation and the unemployment rate. So that is what you have to endorse, if you endorse a central bank, the constitution doesn’t give the authority for a central bank, the constitution still says that only gold and silver can be legal tender. So when Mr. Bernanke tells me that gold is not money, he needs to be asked and when I get a better chance to do it, I’m going to ask him, “Well, how does he have the right to amend the constitution”, because the constitution has not been amended.
News Anchor: Obviously.
Ron Paul: So up until 1913 you did not have a central bank and we did quite well.
News Anchor: The economy is in a mess right now, William of Duncanville, Texas wants to know, “What needs to be done to restore it to health, what should be done first, what would be your first act?”
Ron Paul: Well, there are a lot of first things done, but there is no magic thing. The most important thing that has to be done, is to get people to understand the necessity of liquidation of debt, because you can’t get growth if you have a pile of debt. So we’re living with debt and we’re expanding debt. So that means that we have to reverse the philosophy that we bail out banks, bail out corporations and dump all the bad assets on the consumer and on the tax payer. So that’s the most important thing. But there are a lot of other things you have to do, you have to save a lot of money, you cannot continue fighting these trillions of dollars of wars around the world, we have to change our foreign policy and bring our troops home, make sure they spend this money at home. You have to have a renewed monetary system and not have a weak currency. A strong currency invites capital into the country, a different tax code would invite capital into this country, we wouldn’t chase our jobs overseas because we shouldn’t have the fiat currency, the reserve currency of the world; that chases jobs off sea. But with a bad tax code and a regulatory code, you chase capital away and you chase jobs away, and the evidence is very obvious. For the last 30 years, that’s what we’ve been doing and that’s why we’re in this crisis, and all we’ve gotten for it is debt; that’s why you have to address the subject of the central bank as well as free markets.
News Anchor: We know you have a lot of hands to shake there yet at the Iowa State Fair. Ron Paul, congressman and presidential candidate, it’s good to have you on, thank you.
Ron Paul: Thank you.
News Anchor: And thank you to our viewers as well for some of those great questions.