Ron Paul: The Government Wants Inflation, Devalued Dollar

Congressman calls proposed spending freeze “just talk” that won’t happen

Steve Watson
Wednesday, Jan 27, 2010

Ron Paul: The Government Wants Inflation, Devalued Dollar 270110RPCongressman Ron Paul appeared on Neil Cavuto’s Fox Business show last night to discuss the news that Obama intends to enact a spending freeze, a policy the president previously admitted would amount to a “hatchet job”.

Paul made a number of salient points, including the fact that a spending freeze flies in the face of the government’s actions over the past year and goes against what they would like to see happen – more spending.

“I think they are responding to what they’re hearing but they still don’t quite understand it, and I would say Congress as well as the president.” Paul said.

“They know there’s something going on but they’re lost as to what to do because they can’t change the philosophy of government, they can’t change the welfare state or the warfare state. So they have to talk about this.”

“This talk of freezing a few of the expenditures, it doesn’t start ’til 2011, and it won’t happen. That proposal of Obama’s actually would allow foreign aid to go up, but the air traffic controllers would be frozen, could you imagine that passing the Congress? This is just talk.” Paul added.

The Congressman explained that freeze on spending, akin to a crash course diet for the government after months of pigging out, would be in direct conflict to the preponderate view on Capitol Hill.

“The philosophy that is prevailing here in Washington is that when you’re in a slump, you need the government to spend more money, and some of us believe the government should spend less money and that the people should get their money back with lower taxes, then they should spend the money and make the decisions.”

“We’re going to slip and slide, we may have another major crisis. The way we’re going, since we think that spending money and borrowing money and printing money works, we will end up with a dollar crisis and then all these number won’t have any meaning whatsoever.” the Congressman urged.

“If you go into an inflationary period and you have a slump, something worse than the stagflation of the 70s, revenues crash and inflation costs go up.”

“The natural market forces want people to back off and not spend and save and pay down their debt. The government does exactly the opposite. They want you to spend and borrow, and inflate. The government wants inflation because they can never pay this debt, so they look for a devalued currency because you pay back ten cents on the dollar it’s not as big a difficulty in paying off the debt.”

“They are frustrated because they don’t have the inflation that they are looking for, because they equate inflation with a healthy economy, and that is not the case at all.” Paul concluded.

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