Ron Paul: Rick Perry Is “Politically Astute” on Federal Reserve and Secession


Larry Kudlow: For an exclusive interview, Texas Republican Congressman Ron Paul, who by the way, is not only a presidential hopeful, but finished a very close second in the recent Iowa straw poll. Congressman Paul, as always Sir, welcome back to the program. I want to get your take on what Governor Rick Perry said today. “Almost treacherous or treasonous” regarding Ben Bernanke. What’s your thoughts, Sir?

Ron Paul: Those are pretty strong words. But you know, the founders felt pretty strongly about counterfeiting. I wouldn’t call it treasonous but I would call what our Federal Reserve does morally equivalent to counterfeiting because they create money out of thin air and they give us our problems.

In 1792, when they had the first Coinage Act, they thought so strongly about this issue, they invoked a death penalty for people who were counterfeiters. So, they never liked this idea of counterfeiting. And they did not believe we had the right to emit bills of credit. So, I like this issue. To me, the fascinating thing is that the Governor comes into the race, he gets a lot of attention. And on the first day out, they ask him about the Federal Reserve. This hasn’t been done, maybe ever. So, I would say monetary policy…

Larry Kudlow: So, monetary policy is front and center in this presidential race, which is probably where it ought to have been. Now, you, Sir, have always been a strong opponent of devaluation and money printing. Is Governor Rick Perry onto something here?

Ron Paul: I think, politically, he’s pretty astute. He came out for secession too when he had a Tea Party candidate running against him. So, no, he’s pretty good. But I have no idea what his monetary policy issues are, what is real principles are. But I do know that the fact that he came out and didn’t say: “Hey, lay off the Fed. The Fed’s my friend.” Which means it’s a turning on this whole issue of monetary policy. And you’re right. I was motivated in the 1970s because the handwriting was written on the wall for me forty years ago. We just sort of celebrated that date forty years ago when the Bretton Woods ended. So, that was a signal to me that the dollar was doomed.

Just look now: it used to be 1/35th of an ounce of gold, now it’s almost 1/1800th of an ounce of gold. So, we have a very weak currency and, Larry, I agree with you wholeheartedly. You need a strong currency. This whole idea that a weak currency is healthy for the economy – you need a strong currency but you need to invite capital. If you’re not going to allow the press to mess up the deal with capital and pretend they can get capital out of a printing press, you got to get our capital back home. Which means you’ve got to get rid of these taxes on capital. And then I think we could thrive again. But we’re not on the verge of doing it.

But I think we’re going in the right direction because we are talking about reducing capital gains taxes and taxes on corporations. Texas has done better because we’ve never had an income tax on our corporations. They’re all for individuals and I think that’s very, very good.

Larry Kudlow: And, Congressman, let me just ask you. Another one of your opponents in the presidential sweepstakes is Governor Mitt Romney. Now, I’m not taking sides here. I just want to note, when I interviewed Governor Romney back in April, I asked him specifically about Federal Reserve policies, about QE2, and I asked him about dollar depreciation. I played the clip earlier, I’m sorry you missed it. But Mr. Romney, Governor Romney, defended Ben Bernanke. What’s your comment on that?

Ron Paul: Well, that would tell you where he’s coming from as a very establishment economic position. And, therefore, he wouldn’t be arguing the case for hard money, or sound money, or a strong currency. But that view may change, who knows. I think the country is changing. And they’re putting more emphasis on monetary policy. And eventually they’re going to come around to believing a strong currency is the most important. But I don’t know. I’ve never discussed it with Mr. Romney about his monetary policies.

Larry Kudlow: All right, Congressman Ron Paul. We appreciate you…

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  • Northern Observer

    There are two difference between Rick Perry (RP) and Ron Paul (RP) when it comes to the Fed. Firstly Ron Paul will never get close to being president while the odds are pretty good that Rick Perry will win the Republican nomination and defeat Barack Obama in 2012. The second difference is that Ron Paul sincerely believes that the Fed should be abolished while Rick Perry is just throwing out some red meat to the extremists who are the foot soldiers of the Republican Party. Once he has the Republican nomination in hand his position on the Fed will suddenly become much more nuanced. His billionaire backers, of course, would be horrified if he really believed and acted on abolishing the Fed. They think that Rick is someone they can trust and rely upon if elected – cut back on regulating our industries, keep taxes for the super wealthy low, keep the medical insurance gravy train and all those other help-the-rich-get-richer engines on track, etc. Unfortunately the Rick Perry’s of the World are not always so easily controlled and they actually might try to implement their extremism – as the German industrialists discovered with Hitler.

  • MrDeathSmiles

    Rick Perry would kiss Bernanke’s ass once he won the presidency.

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  • spartandx

    the federal reserve is not federal and it doesn’t have reserves, the name is misleading, it’s owned by private banks and money is not destroyed it’s going to the money changers

  • danz177

    If I can I will donate from Barbados. I’ll give US$100 to start, if I can, they always ask which state your from. My brother lives in the states maybe I can get him to donate and pay him back. But hey people of the world, if you want your countries to be set free from the tyranny that the elites have used America to unleash on sovereign countries why don’t you find a way to donate. Match my US$100.00 August 20th. Call your cousins, pay them back, get the money to the beacon of liberty RON PAUL

  • propagandakills221

    Perry is a fraud.

  • herbert7711

    We need four more years of obama.NOT.

  • GOPkicksbutt

    Thanks to liberal policy the world economy is crashing. We must do two things to stop the meltdown NOW!!! Firstly, we need to raise all payroll taxes 10% for one year. We also need to stop (right now) wasteful handout programs like medicare, social security, unemployment,, etc. and lower the minimum wage to $2/hr so we can compete with China. I will work with Perry, Ryan and my other republican colleagues and take immediate action on these proposals. God bless the GOP!

  • wutupjosh

    Every question Ron Paul gets, he educates you with history and then delivers the perfect answer.

  • smokinranger8

    Perry sticks his finger in the air, what a crock of $hit. Ron Paul’s been beating the same drum for 40 years …it is RON’S time. Sad that this limited government philosophy is seen as a last resort instead of a first choice.

  • craigymeboy

    i have to laugh , is rick perry onto something about the fed , ron paul has been saying it for 20 years

  • Amino2

    Rick Perry will have this rhetoric about the federal reserve that Ron Paul always had in order to get elected, then he’ll be the federal reserve’s lap dog if he becomes president. It’s reverse psychology. If you can’t beat them (Ron Paul), join them.

  • Intervene

    Go Ron

  • Kane88andToews19

    not even voting for Ron in the primary, Perry has my vote… BUT Ron Paul is the Paul Revere of our time…. look at the GOP in 2011 compared to the GOP in 2008 or 2004… half the positions Rep. Paul was called crazy for three years ago are now being adopted by the mainstream GOP…

  • Kane88andToews19

    Perry/Paul 2012. I am not a “fan” of either but that is a ticket that could save our country

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