Congressman
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.
Congressman
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 