Wednesday, June 8, 2011

Ron Paul On Default

KEYES: Congressman, there’s been a lot of heated rhetoric about this upcoming debt ceiling fight. Do you think it’s really going to be that bad if a default were to happen come August 2nd?

PAUL: Well, they’re not going to let it happen. They’re going to do it. But I try to tell people, a default is already occurring, it’s just how they do it. Governments always default, but most of the time, they don’t quit paying their bills because they’ll just print the money. They default by giving you money back that doesn’t have as much value and that’s when prices go up. So that’s how they’re defaulting and since there’s inflation back and hurting us, there’s plenty of default going on right now.

KEYES: Do you think though if we avert this August 2nd deadline by passing an increase in the debt ceiling, we’re missing an opportunity to perhaps teach a lesson like you’ve been talking about?

PAUL: No, I think if you didn’t raise it, people say it would be the end of the whole system, but maybe people will say, “hey, maybe they’re serious!” And maybe it would be a positive. That’s what we should do because if we continue to do this, we’ll destroy the dollar.

KEYES: It could be a positive thing though?

PAUL: I think it’s possible, but it’s not predictable.


  1. Is your money debt, like a mortgage loan really simply created “out of fresh air” by the banks that you must repay with interest too ?

    Or is that simply wild conspiracy theory ?

    Well there is actually a very real conspiracy by bankers.

    In the USA fractional reserve system, it's the banks that counterfeit most of the money.

    Read the booklet from the Chicago Fed entitled modern money mechanics.
    Direct from the banksters own mouth on how they create money .
    They say:
    Who Creates Money?
    Changes in the quantity of money may originate with
    actions of the Federal Reserve System (the central bank),
    depository institutions (principally commercial banks), or
    the public. The major control, however, rests with the
    central bank.
    The actual process of money creation takes place
    primarily in banks.'
    As noted earlier, checkable liabilities
    of banks are money. These liabilities are customers' ac-
    counts. They increase when customers deposit currency
    and checks and when the proceeds of loans made by the
    banks are credited to borrowers' accounts.
    In the absence of legal reserve requirements, banks
    can build up deposits by increasing loans and investments
    so long as they keep enough currency on hand to redeem
    whatever amounts the holders of deposits want to convert
    into currency. This unique attribute of the banking busi-
    ness was discovered many centuries ago.
    It started with goldsmiths. …”

    "The actual process of money creation takes place primarily in banks."
    After creating a lot of dud sub prime and other
    loans they issued fraudalent bonds based on those debts when it all went belly up
    the banksters simply organised a financial coup and handed those bad debts to the fed for a cash
    refund and the fed passes the cost for the taxpayer to pay it all off .

    A so called National Debt!

  2. Is the fed really in control ?

    Or the US Treasurer secretly operating the US Exchange Stabilization slush fund that accounts to nobody that tells the fed what to do?

  3. It is now just a waiting game!

  4. wooow. WOOOOOOOO. Ron is not that good. sometimes i feel a little cured of anger when seeing him. to bad it doesnt last the week. for i have no like for much of his policies. its not him i hate its his views. We do need honor, courage, manhood, dignity, pull out chairs, easy of swares. young men today are fat and stupid. young women are put down for being thin and pretty. go wonder why gorgous and graceful taylor swift is put down by feminists. simple. they are fat mean and ugly. and that makes them envy her. but i didnt come here to discuss hot or not. i came here for revoltion. and boy how i wish it was revolving.

    - Sam


Everyone is encouraged to participate with civilized comments.