Ron Paul: The United States is Bankrupt

Channel: Fox News
Show: Glenn Beck Program
Date: 3/23/2009


Glenn Beck: We’re back with Texas Congressman Ron Paul. Senator Gregg said that the United States is going bankrupt, and that Obama is going to bankrupt the United States of America. Do you believe that, Congressman?

Ron Paul: Not quite, because I think it’s already bankrupt. It’s insolvent, and we couldn’t pay our bills. The official declaration hasn’t been done yet but we couldn’t pay our bills. Everything that we pretend that we owe… there’s no cash flow to pay for all the bills. Even if we sold every acre of land in this country I don’t think we could pay our bills.

So yes, the bankruptcy of America is here and I think this financial crisis should lend itself to our benefit, in that people will become outraged and maybe demand some changes here in Washington.

Glenn Beck: So when you say we can’t pay our bills, what does that even mean? It doesn’t affect people when they realize now that the new number is $116,000 for every family of three. $116,000 every American family now owes. People just think, “I’m not going to have to pay that, it will just roll over into something else”.

Ron Paul: No, if you can’t pay your bills then you have to go out and borrow it or work harder, and everybody understands that. The government can’t pay their bills, they don’t have the money. The tax revenues are going down and the bills are going up. We don’t slow up on the spending, we quadruple the amount of spending. But they have a printing press and they print the money. People still have a trust in the dollar, so they pay the bills that way, which is deceitful and wrong and this is why I think… go ahead.

Glenn Beck: Well, I was just going to say that the thing is… I mean if you saw last week when they started monetizing our debt which, America, means taking an IOU from one pocket, giving that IOU to the Treasury, the Treasury prints a trillion dollars, then hands it to the other hand and says, “Oh my gosh, look at the money. Oh can we borrow that?” I mean, its crazy talk. Gold went up like $78… that was people freaking out. But what they will say is, “The rest of the world is in worse shape than our dollar is and so we’re fine, we’re going to be fine. Everybody else is going to collapse before we do”.

Ron Paul: Well, that isn’t the case, but this is an opportunity for us because for a long time I’ve been saying that we need more transparency of the Federal Reserve because they were creating the bubble. We could have prevented this, but they didn’t listen, the crisis has come. But now the people are much more alert and saying, “Yes, that makes a lot of sense”. We do need to know what the Fed is doing and that’s why they support my position on transparency in the fed.

Glenn Beck: So what is it we can do? What is it actually that people in Washington fear? Because I don’t think they fear anything, they don’t fear a scandal, they don’t fear anything.

Ron Paul: They fear truth, if the truth comes out they can’t handle that.

Glenn Beck: What can the average person do to let the people in Congress know, “Hey, you work for me”.

Ron Paul: Everybody’s job is different. It might be running for Congress, supporting candidates, calling their Congressman, doing whatever. In my own little way, for these many decades, it’s been dealing with the monetary system, because I thought it was the big issue. And I’m working right now on a precise piece of legislation, HR 1207, which would demand that the Fed open up their books. They have not had to do that. They’re protected by the law. So that is something I can do, others could help me if we get to Congress. The people want that. I would…

Glenn Beck: HR 1207. Congressman, thank you very much.