Video Ron Paul: Liquidate Debt and Get Rid of Malinvestments

Some notable excerpts from the media inquest of Congressman Ron Paul:

When government spend money they spend it on non-productive manner and every penny the government spends they have to take it out of a productive source of money, money has to come from somewhere.

The house is on fire and you think you are putting water on it and I think we are putting kerosene on it…yes we should put more money into the car industry but it should come from the private sources. It shouldn’t come from government because governments will divvy up the money politically...If there is anything of value it will be bought up…you have to allow real capital to flow in.

Fault in the thinking that we would need so much government

We should have more [regulations] on the Federal Reserves so that we know what they are doing as they are exempt from regulations

We gave treasury $325 billion dollars and we don’t even know where they spent it

If you understand leveraging up equities and debt you have to look at fractional reserve banking that’s where you pyramid debt. So they’re doing exactly what the federal reserve does, as they create money out of thin air and they pyramid debt. That’s where the bubble comes from. That’s why you have to look at monetary policy, you’re looking at the symptoms rather than the cause.

As long as you do it through debt financing it is impossible, ideally roads and bridges should be taken over by our states, it wasn’t designed by the constitution that the Federal government would take care of every bridge and every road. But that isn’t the worst type of spending and I think in the interim we certainly could cut the spending overseas. But we’re gonna bring ourselves to our knees we’re gonna have a dollar crisis, we’re doing exactly what Osama Bin Laden wanted to do what he did to the Soviets, he is bringing about financial chaos to this country, and we got to realize that excessive of spending is the problem it’s not that we need more government spending.

The reality is you have to liquidate debt and get rid of malinvestments, if you don’t do that you can’t do it. But what you are doing now is you are working on the destruction of the dollar, there is a pretense that you are going to improve things but you’re really gonna destroy the dollar and the financial crisis we have today is going to be a dollar crisis.

So you can’t blame the people who are trying to correct the problems on the unemployment you got to blame the people who created the bubble, the people who were delighted with all the billions of dollars they were making in the last decade...