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This is a rush transcript. If you notice any errors please report them using the “Help improve this post” link at the bottom of this post.
Jerry Doyle: Twelve term congressman representing Texas’s 14th party and, if anything, he has been persistent, consistent, and now he’s a top-tier candidate, which I guess makes him just annoying to many in the permanent ruling class, he just won’t go away. Congressman Paul, it’s good to speak with you again.
Ron Paul: Thank you, Jerry, it’s good to be with you.
Jerry Doyle: I have watched with some great joy, and others with consternation, that you continue to gain traction. You’re moving into the top-tier, you’re continuing to raise a lot of money, and a lot of people are saying, “Okay, that would never happen”, but now that has happened, now you’ve reached this political class ceiling. ’19%, never to go any further, you’ve absolutely peaked’: and I would have to say that they’re probably going to have to eat those words too.
Ron Paul: Well, we’re optimistic and the movement here in the last few months or two has been a reflection of what we’ve been doing, because we’ve been spending a lot of time in Iowa and New Hampshire and as well as Nevada. But this reflection of the polls today was a reflection of what we sort of knew. When they do these national polls, they’re not a reflection of exactly what’s happening on those probable votes and the organization that we have. So I feel pretty good about the way things are going.
id="more-12624">Jerry Doyle: Were you too far ahead of the curve, Congressman, with regard to things like auditing the Fed? Because a lot of people didn’t know what the Fed was, didn’t know what the Fed did, and when you were talking about things like auditing the fed, people were like, “What the heck is he talking about?” But now that others are talking about it and are equally concerned as you are about our monetary policy, our debts, our deficits, and what we ought to try and to do avoid generational bankruptcy.
Ron Paul: The Fed gained so much power to create money at will, and there was no auditing, no oversight from the Congress, which there should be. But as long as things seem to be rocking along okay and the credit was good in the country and the recessions weren’t severe, they just assumed, “Forget about it”. But now they’ve been forced to think about it, and that’s why the whole world has changed since 2008. Matter of fact, it was a major transition from 2007 to 2008 because we did get a lot of attention in 2007 about the
href="http://www.ronpaul.com/legislation/audit-the-federal-reserve-fed-hr-459-s202/" >Federal Reserve and talked about the impending problems. And then in 2008, when it became very evident, then a lot of people started saying, “We better look at this”. And now I think it’s up to about 65% or more of American people that say we should know more about the Fed. They don’t quite understand it well enough to say that we have to get rid of it, but they understand it enough that it’s really very bad for us to not know what they’re doing. If they can deal in trillions and trillions of dollars and not have to report to anybody, then there’s something seriously wrong.
Jerry Doyle: I look at leverage ratios as an indication of where we’re going going forward. The consumer’s leverage ratio, the debt-to equity, debt-to-income; we’re still probably 5 to 7 years away from the consumers unwinding their debt to help to spur on job creation through the consumption of goods and services. Corporations were leveraged about 30-to-1, the Fed, in its latest analysis, 51-to-1 with 58 billion dollars of reserves pledged against 2.7 trillion dollars of push button money. If there’s a 2% drop in the underlying securities, the Velvet Elvises that they’ve put as collateral for this printing of this money, the Fed is technically wiped out. Now, I would have to think that, based upon the collapse of Lehman, 4 elected governments collapsing over in Europe, 2 in the last week (Greece and Italy), that there would be more people on Capitol Hill, like yourself, that read the tea leaves for what they are, and say, “We have to do something”, but yet this dirty dozen debt super-committee doesn’t seem to be able to understand the ramifications of what has happened, is happening, and could happen to us if we don’t get serious.
Ron Paul: Yea, and you know, if it were a company, I think we could short it and it would probably be pretty safe, because I think you’re right, it can’t operate this way. And even now, we might not have to wait very long because there’s no real solvency to it. Because this ratio that they have, they keep it going only because the world still has a bit of trust in the dollar, we’re using the dollar to bail out everybody. Bernanke said the other day that he stands behind, he’s ready to act if Europe gets into any more trouble. Well, how many people can you bail out with the dollar that’s been downgraded by the rating agencies. So there’s a trust in the dollar that’s undeserved and one of these days the whole country, the world, is going to wake up and say that everybody is going to get out of the currency. Right now they’re still willing to put a little bit of confidence in the dollar, but it cannot last, it’s just impossible.
Jerry Doyle: And there seem to be some fellow Republican candidates of yours that are starting to put some trust in some of the things that you’ve said that they’re now coming around to. Rick Perry got a standing O when he was talking about how we have to reduce all our foreign monies to zero, and then start taking a look at who we’re allocating those resources to, and are we getting a return on our investment. Auditing the Fed was echoed by Newt Gingrich, foreign policy issues are being seconded by Mitt Romney, Rick Perry and others. And it seems like a lot of the other Republicans up there are coming around to a lot of the positions that you’ve consistently had over time. Is this just a forced epiphany on their part because they’re coming face to face with this economic reality?
Ron Paul: No, I think what they were doing was purely a political statement, because they know it’s popular and they talked about zeroing out and then working back on the foreign aid. Well, foreign aid is very bad, I don’t vote for any of it, I don’t believe any of it, but it’s rather minor compared to the overseas expenditure involved in our empire that we operate: being in 130 countries and 900 bases and being in these wars, that’s where the big money is, they’re not talking about that. On the same evening when they said let’s cut our foreign aid, they were talking about expanding our militarism around the world and talking about taking on Iran. Just this week nobody hardly said a word, Obama said, “We got to put troops in Australia”. I mean, what are we needing troops in Australia for? We can’t even afford to feed our people back home and provide jobs, and over there we are shipping more troops to Australia and looking for provoking something with China? That makes no sense, they’re not talking about that, they’re talking about the old fashioned foreign aid and they didn’t say “We’ll stop it”, they said “We’ll reassess it all, and after we reassess it, we’ll give them that portion that we think they deserve”.
Jerry Doyle: With regard to our stationing military marines and navy down in Australia in Darwin, which is the Pearl Harbor of Australia because more bombs landed on Darwin than on Pearl Harbor in World War II. But I went through a speech that Hillary Clinton gave as a precursor to Obama’s visit, and she gave this speech and I went through the speech and I was highlighting all the instances where they were talking about promoting balance and economic growth, where we have to look at increased investment, diplomatic, economic, strategic. We have to look at economic architecture, economic issues that will be front and center in our relationships in the region. It seems to me, Congressman, that we’re now sending the military down to ‘guard the mall’, so to speak, which would be to guard the economic interests of the United States, of businesses in that region, and to a certain degree, rightly so. But it seems we’re again making military commitments based upon economic interests, not strategic military decisions.
Ron Paul: No. I think you’ve said it well, and a lot of times, any place where our investments go, the military follows, and they’re sort of like they’re a private police force. But economically speaking, we encourage this. We complain so much about our jobs going overseas, but we have this agency called the “Overseas Private Investment Corporation”, which means if you or I had a business and we went over, let’s say we did go to Australia, and we start a business over there. If for political reasons or military reasons we get into trouble, the tax payers insure it, so we literally subsidize the sending out of businesses to these other countries. And if it were the market, we wouldn’t want to go into a country where we may get into political trouble. But if we go into a country and we get into political trouble and one of our businesses gets into trouble, they actually have insurance backed up by the American tax payer. But there is a relationship between our business people and our military around the world, and it incorporates a lot of activity by our CIA agents as well.
Jerry Doyle: Congressman Ron Paul is our guest, RonPaul2012.com is his website. With regard to what our military strategies and policies would be going forward in light of the proposed cuts that are going to come out with the sequesters from the super-committee, I think a lot of people have the misconception that you’re soft on the military when in actuality you have more contributions from military personnel than all the other candidates, including the President, combined, if I have that correct. But yours is more of a strategic use of the military rather than a boots-on-the-ground global deployment, do I have that correct?
Ron Paul: Yea, and what I want is to restrict our military to the defense of our country, not to be the policeman of the world. Matter of fact, George Bush had a pretty good foreign policy in his campaign in the year 2000. He said we shouldn’t have an arrogant foreign policy, or they’ll resent us. We should have a humble foreign policy, we shouldn’t be the policeman of the world and we shouldn’t be in nation building; and that’s pretty good stuff, but look at what’s happened. And even Obama in the campaign pretended that he would be more likely the peace candidate. But when they get in, they don’t follow up on that. Here Obama is going into Libya without even consultation with the Congress, and it’s just so out of control, and that’s not what the military was meant to be. Besides, it contributes to this bankruptcy of our country. 4 trillion dollars that we have spent were added to our debt in these last 10 years. And we don’t want to think about the fact that … and fortunately we didn’t have to fight the soviets, but the soviets collapsed for economic reasons and, ironically, fighting a war in Afghanistan that they were losing. So it just bewildered me to think that people are just quietly going along and they listen to this and the other candidates think, “This is how I’m going to get elected, the more militant I can be and the stronger I am and the more willingness I show to go and start another war, the more likely I am to get elected”. That makes no sense at all.
Jerry Doyle: Absolutely, last question. Congressman Ron Paul is with us, www.RonPaul2012.com is the website. With regards to what we’re seeing in this deadline – I call them ‘the dirty dozen’ on the super-committee, Congressman, because they’ve gotten 520 million dollars in campaign contributions since 1990, I would have to think that that’s going to influence some of the decisions that they come up with. It doesn’t look like they’re going to meet the deadline, they have a 48 hour deadline before the Wednesday drop-dead date, so that makes it Monday. Here we are on Thursday, and it seems that yet once again, they’re going to kick this can down the road, put it back into congressional committee, let them do the job that they didn’t do that caused the super-committee to be created in the first place. How does this end, I mean, when does this end, when do we just say, “Stop spending”, and we start to get real about what our true economic problems are?
Ron Paul: Well, they’re not going to come up with any real cuts, and even if they did what they were asked to do, and they’re only cutting these proposed increases, I think the end is going to come if we don’t have new people and a new president that’s willing to cut a trillion dollars in the first year. It’s going to end with a financial crisis that will make 2008 look like a picnic. It will be much, much worse, it will be the collapse of the whole financial systems, and we’re going to see a rush from paper currencies because none of them are backed with anything. And you’re going to see an explosion of not only interest rates, but also prices, and then we will be forced into having monetary reform.
Jerry Doyle: Well, let’s hope that cooler heads prevail, and while we still have the time to do something to head it off at the pass that we at least make steps in those directions. I know your direction is upward, punching through the 19%, and defying all those who say Ron Paul has peaked, I think there are higher elevations for you to climb to, sir. Congressman Paul, continue your success, thanks for taking time to be with us on the program, I know our listeners appreciate it.
Ron Paul: Thank you, Jerry.
Radio Voice: The Jerry Doyle show.
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