According to Ron Paul, the government shutdown and the debt ceiling aren’t what are really plaguing the economy in the U.S. He says what investors should be worried about is “the breakdown of the entire system.”
Ron Paul worried about a weaker dollar
Speaking on CNBC, Paul said in terms of a credit default, there’s nothing to worry about because the U.S. will always pay the interest on its debt. He calls that “a fake argument” and said instead he is worried about “the continuation of the default by paying off our bills with money that has less value.” He believes this is the real issue and says that lawmakers aren’t even talking about it.
Ron Paul even called the Oct. 17 date given by Treasury Secretary Jack Lew “pure fiction,” saying that it just isn’t real. He said in May the debt limit went over, and yet, “they continue to illegally fund all these programs.”
Ron Paul offers bipartisan blame
The former Republican presidential candidate wasn’t short on offering blame for the situation. He said lawmakers in both parties are responsible because neither side is “serious” about reducing spending. He says both Republicans and Democrats are doing nothing but “grandstanding” and “politicizing” the government shutdown.
In fact, he says it isn’t really a shutdown, but rather, nothing but “a political game” and “a blame game.” He says Americans have lost faith in the U.S. government and that they’re right to do it.
The whole system is to blame too
“The government is not credible in foreign policy, they’re not credible in Federal Reserve policy, they’re not credible with bailing out the economy,” Paul told CNBC.
He suggested that the American people “blame the whole system, the philosophy, Keynesian economic, interventionism and foreign policy, our violations of our civil liberties.” Paul has been an outspoken critic of the economic system for some time and advocates returning to the gold standard. He says even though the markets aren’t worried right now, they will be worried in the long term.
Ron Paul also blames the Federal Reserve
Paul says that if the system doesn’t change, there’s trouble down the road. He said it doesn’t matter who’s running the Federal Reserve because the monetary policy of “print the money until doomsday” will remain. In fact, he says doomsday is coming because we can’t print money forever.
In the long run, he said Americans must redefine the government’s role in order to get rid of the fiscal issues it faces. “People have to eventually ask the question: Do we want the role of government to be that of being the policeman of the world and have runaway welfare spending and print money when you need it?” he said.