Ron Paul: Sequester Is Just A Fear Tactic

Transcript

Melissa Lee: If you want honest talk about what Washington needs to do to get its fiscal house in order, there is no better person to talk to than our next guest, the always outspoken and insightful former Congressman, Ron Paul joins us now on the phone. Dr. Paul, it’s great to have you back on Money in Motion.

Ron Paul: Thank you, it’s nice to be with you.

Melissa Lee: We are market watchers, and this is what the market is telling us: the S&P 500 and the DOW were marching up towards new highs, and the U.S. dollar is also getting stronger. At the end of the day, could this sequester actually be a good thing for the U.S. economy?

Ron Paul: Well, if they really had some cuts in there, it would be a good thing, but there aren’t any cuts, so I wouldn’t give that any credit. But income is going down, it was a bad month in January, and it had to do with the fact that taxes went up. But the President is laying the groundwork for saying that if there’s any problem within the next year, it’s all because of the sequester. But the whole thing is, the sequester isn’t there, it’s just a fear tactic in order to raise taxes, that’s what they’re doing. If there’s a crisis, believe me, the Congress will spend the money. If it’s a financial or a war crisis, they’ll spend the money and there’ll be no hesitation. The Fed spends 85 billion dollars a month, and they’re questioning this whole thing about this nickel and dime. The proposed increase in spending in the next 10 years is 2.5 trillion dollars, and if the sequester goes through, they’re only going to spend 2.4 trillion dollars in additional funds, it means nothing.

The budget is going up automatically at about 7% per year, if the sequester goes through, it will go up at 6.9% per year. I’d like to challenge the people who think this is a big deal by saying, “Okay, you don’t want any cuts? I won’t cut anything, let’s just freeze the budget and give everybody what they had last year”, and see what they say then, because they wouldn’t accept that. But I say just have the budget the way you had it one year ago, and then you can’t complain that you had any cuts.

Andy Busch: Dr. Paul, it’s Andy Busch here, we missed you this week with Bernanke testifying at Capitol Hill, we would have loved to have had your insights then. But isn’t this really a tempest in the teapot? I think, at the end of the month, the big battle is with the continuing resolution. What’s your view on the potential shutdown of the U.S. government over that spending fight?

Ron Paul: I don’t think so, I think they’re afraid of it. A big argument goes on and there’s the pretence that one party wants to cut and the other one doesn’t. But both parties are against having anything in the military budget, so they’re not going to shut down the government, that would be my opinion. And they’re not going to really ever cut anything. As long as this world and the people accept dollars, which they continue to accept, they’re going to keep printing the money, Bernanke is going to keep printing 85 billion dollars a month. And that’s what they’re going to do until the confidence is lost, there are going to be no cuts, there’s not going to be any move towards cutting any budget or balancing the budget, there will be no move in that direction. So I don’t believe for a minute they’re going to close the government down for anytime at all.

Brian Kelly: Dr. Paul, it’s Brian Kelly. I guess what we’re seeing is just this massive disconnect between Wall Street and Washington about what’s the rational path forward. As somebody who was in Washington, is Washington’s definition of ‘rational path’ different than Wall Street’s and Main Street’s? Are we just seeing huge disconnects?

Ron Paul: Oh, there is, and I don’t want to say too much against Wall Street, but I think Main Street has a pretty good feel about this. Wall Street certainly, from my opinion, has a good feel about it on the short run, they know what markets do on the short run, and they know that this is not a calamity. I think at the grassroots, though, Main Street knows that on the long run, this is a disaster. And I think this is why a lot of young people are interested in what I’m saying, because they’re inheriting this mess, and they know what it means on the long run. But the people in Wall Street are pretty good at figuring this out in the short term, and I think they have it correct: this is not a financial disaster. But I think the long term process of spending, huge deficits, not cutting anything, and printing up money, is a disaster, and there are a lot of people who are starting to understand that.

Melissa Lee: Dr. Paul, it’s always great to speak with you, thank you for your time.

Ron Paul: Thanks for having me.

  • http://www.youtube.com/profile?user=dushi21 dushi21

    I fuk this smart Asian long time. Oh yeah

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  • http://www.youtube.com/profile?user=bigchickenfu bigchickenfu

    sequester THIS !

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  • http://www.youtube.com/profile?user=hounddog2952 hounddog2952

    dear mr berry
    i have news an proof you are a kenya born flip flop wearing boy lover who smokes crack .you have fucked my land up an im here to tell you , go back to kenya where you belong .your bc doesnt match the real 1 .you lie to these dumb down ppl of america thinking your bout chance .only to get voted in the white house .your fkn wife was a project from area 54 thats wasnt to be let loose.fuck you die slow you fkn muslim .1 letter you just got to read. free cell any1 that votes for berry

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  • http://www.youtube.com/profile?user=NickBailey Nick Bailey

    I voted for this true American.

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  • http://www.youtube.com/profile?user=ros1tony ros1tony

    how about sequestration means… lowering taxes for everybody. if i had more of my money i would be able to drive the economy in a more positive direction (because i represent 1 of 250 million people; family, peace, prosperity, saving), instead the tax money gets collected and spent on the ideological view of a select few…

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  • http://www.youtube.com/profile?user=mvpmets2012 mvpmets2012

    no mention of racist newsletters now huh?

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  • http://www.youtube.com/profile?user=JohnAndrew John Andrew

    Other than perhaps Gary Johnson, RP was the only candidate proposing real cuts in federal spending (Obum admitted this, calling out Bush for wanting the debt ceiling raised & campaigning on a “net cut in spending”), to the tune of $1 trillion. This sequester is just nibbling away at baseline-budgeting, there are no substantial cuts. If they go nuts over these paltry “cuts” then they’re not serious about balancing the budget & should leave office promptly (that includes Boehner too).

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  • http://www.youtube.com/profile?user=UTubekookdetector UTubekookdetector

    Other than perhaps Gary Johnson, RP was the only candidate proposing real cuts in federal spending (Obum admitted this, calling out Bush for wanting the debt ceiling raised & campaigning on a “net cut in spending”), to the tune of $1 trillion. This sequester is just nibbling away at baseline-budgeting, there are no substantial cuts. If they go nuts over these paltry “cuts” then they’re not serious about balancing the budget & should leave office promptly (that includes Boehner too).

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  • http://www.youtube.com/profile?user=SkibumWilly Skibum Willy

    Watch “Occupying Chairlifts” on youtube, a simple rule tweak on inheritance ends up changing the direction and purpose of modern human life! Here’s a fair way to transition forward, something specific we can demand, protest for, and adopt ourselves! Spread it around! If this isnt the best answer, at least we’re thinking about what might be. What if we were really just this close to having it work right?
    Oh yeah, it’s a Ski movie thing. Watch “Occupying Chairlifts” on Youtube!

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  • http://www.youtube.com/profile?user=atwitsend atwitsend

    “I believe that if the people of this nation fully understood what Congress has done to them over the last 49 years, they would move on Washington; they would not wait for an election… It adds up to a preconceived plan to destroy the economic and social independence of the United States!”

    Quote by: George W. Malone
    (1890-1961) U.S. Senator (Nevada)
    Date: 1957
    Source: speaking before Congress

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  • http://www.youtube.com/profile?user=johndoe john doe

    You are right what Obama has done will only start to effect us this year and for the next 10. Its really going to start and show in 2014 and 2015 how bad things are going to get. America is starting to wake up to the corruption and is starting to speak out. WE need more now though to stop the rest of the destruction we are likely to incurr in the next 4 years.

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  • http://www.youtube.com/profile?user=johndoe john doe

    You are right what Obama has done will only start to effect us this year and for the next 10. Its really going to start and show in 2014 and 2015 how bad things are going to get. America is starting to wake up to the corruption and is starting to speak out. WE need more now though to stop the rest of the destruction we are likely to incurr in the next 4 years.

    Like or Dislike: Thumb up 1 Thumb down 0

  • http://www.youtube.com/profile?user=AdrinStrachan Adrin Strachan

    and John Kerry just gave Mohammad Mursi 450-480 mil.

    fuk these politicians

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  • http://www.youtube.com/profile?user=MongoMedicineMan MongoMedicineMan

    Half the cuts ARE military. Confused? Old Fart explains it well here… watch?v=hWT0JYd6r54

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  • http://www.youtube.com/profile?user=llg4ever llg4ever

    Sequester … what a joke – why don’t you cut the war machine assholes????

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  • http://www.youtube.com/profile?user=JayStimson Jay Stimson

    If the DHS targets aren’t enough to convince you of the Obama regime’s intentions then you must be completely brain dead. Wake the hell up America !!! It’s time to make a stand against tyranny. /watch?v=0DJTaEmaWbQ

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  • http://www.youtube.com/profile?user=revolution4freedom1 revolution4freedom1

    YOU asked why he said “2016”. You got the reason right, its the Presidential year. Now keep your own rants to yourself.

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  • http://www.youtube.com/profile?user=ckairnes68 ckairnes68

    Right, Executive Orders were never meant for a President to enforce upon the People. They were meant only to direct members of the administration or military to carry out laws created by the Congress. We can thank Abraham Lincoln for redefining what an executive order is and how they were to be used. The Reconstruction Acts also changed the jurisdiction of the District of Columbia unlawfully to subjugate the citizens.

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  • http://www.youtube.com/profile?user=jyeamans02 jyeamans02

    Its an excuse to hurt the little people on disability benefits, shaft the teachers and screw the last of the honest cops left out there…

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  • http://www.youtube.com/profile?user=monjiaitaly monjiaitaly

    don’t forget executive orders, those alone signed by obama should make us revolt.

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