Ron Paul Interview on CNN May 27, 2009 (Video)

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(5:31 PM PST Update) Ron Paul's "Audit the Fed" bill (H.R.1207) apparently now has 207 co-sponsors, including House Minority Leader John Boehner (here's the link). 10 more co-sponsors to attain House MAJORITY.
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Ron Paul on CNN American Morning on May 27, 2009.

[President Obama] contradicts himself. He wants to spend more money but admits that we don't have any money. The question is, where does he get the money? We can't tax people any more, they are overtaxed and the economy is weak.

The common-sensical thing to do is to cut spending, but nobody wants to cut spending. Just this week President promised $100 billion to IMF and he says we we don't have money? It makes no sense. People are outraged, they can't figure out what we are doing in Washington. I can't figure out. They seem to live in a different world, they are not living with reality.

History shows that once you get a certain amount of debt run up by our government, it is never paid back. We've passed that point. Debt is always liquidated. The only question is how you liquidate debt. The governments liquidate the debt by devaluing the currency and paying back their debt with currency that has no value. That's what they are working on, they want inflation. They are begging and pleading for inflation.

Dollar will be devalued, within a year or two, or three, but it will come, and it will be a lot worse than what we've just gone through. Everybody else has fiat currency, too. You can't create $2 trillion deficit in a year and not expect the value of the dollar to go down.

Signs of life in the economy? I think a lot people believe that, but people are totally dreaming about it. You can look at the spurts in 1930s but usually led to bigger trouble down the road. Unemployment was 18% by 1939, so it never improved, with all this interference in the 30s.

We are doing the same thing again, and we have a much bigger problem this time. We haven't liquidated the debt, we haven't liquidated the mal-investment. We still have 19 million uninhabited houses.

Even the bankruptcies have become politicized. The government is dictating what the law should dictate in GM bankruptcy. It's the lack of regulations that we need. Free enterprise and sound money didn't bring on this problem. It is interventionism, corporatism and crony capitalism, this is what gave us our problem.

We will going to remain in this mess until we realize what we need is more freedom, sounder money, get the government out of the way, let the debt be liquidated and get rid of the mal-investment. We don't need more of the same that created our problem.

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