Congressman Ron Paul has not waivered on his belief that default is the most viable means of dealing with the government debt crisis, and through it, allowing the country to flush out the infection that is our current monetary system. In a op-ed written on July 22nd, Paul further defended his position that it is better that the government default now, just as he defended in 2008 that the banks should have be allowed to default, as the necessary solution to both debt crises.
To allow them to continue in the status quo will create a much larger and much harsher crisis later for America.
It isn’t too late to return to fiscal sanity. We could start by canceling out the debt held by the Federal Reserve, which would clear $1.6 trillion under the debt ceiling. Or we could cut trillions of dollars in spending by bringing our troops home from overseas, making gradual reforms to Social Security and Medicare, and bringing the federal government back within the limits envisioned by the Constitution. Yet no one is willing to step up to the plate and make the hard decisions that are necessary. Everyone wants to kick the can down the road and believe that deficit spending can continue unabated.
We have a choice: default now and take our medicine, or put it off as long as possible, when the effects will be much worse. – Bloomberg
Ron Paul’s assessment and direction for our national debt is one that is being avoided at all costs by Congress and the Oval Office, but ironically, may be the only real choice, by default, that occurs because of Congressional bi-partisanship. With staunch fiscal conservatives controlling the House at this time, and the mixed bag of legislators currently in office in the Senate, the chances are becoming very slim that a compromise will be reached before the default date of August 2nd.
The American people watched as the Democratically led Congress and White House added more to the deficit over the past two years than any administration in history, and the reactions from the 2010 elections showed that they have had enough of government irresponsibility. House Republicans elected in 2010 know they have the support of a majority of Americans on this issue, and as such, do not feel pressed to push through any legislation to raise the debt ceiling that does not implement real cost cutting and fiscal responsibility.
In fact, the American people have seen a prime example of what happens when legislators hold strong to a position that has public support, and this scenario occurred recently in the state of Minnesota. Republican legislators held fast against a Democratic Governor over how to deal with a multi-billion dollar deficit, and after a two-week government shutdown, the Governor flinched and signed the budget that demanded spending cuts over new taxes.
Congressman Ron Paul is acting like a true Presidential candidate in calling for the US to default on its debts, especially those created by the Federal Reserve. Unlike many candidates who waiver in their beliefs from one crisis to another, Ron Paul’s stance, both in 2008 with the credit crisis, and today in 2011 with the government debt crisis, shows Americans exactly what they can expect from the man, and it also shows that he has a plan on how to move America forward if a default actually takes place in the coming weeks.