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07/16/11(Sat)18:43:16 No.341225062Lori
Rothman: Great to have you. You famously said that we should not raise
the debt ceiling, and you have an idea to save 1.6 trillion with one
swipe at the Fed’s balance sheet. Explain the idea.
Ron Paul:
Right. We’re over the debt limit. And they’re worrying about it. And I
said, one solution—if we wanted to get serious and get down to business
in the next year, do all the work we should do—we could get a reprieve,
because we owe $1.6 trillion to the Federal Reserve. But where did they
get the money to buy our debt? Well, they created it out of thin air. So
taxpayers keep working hard! to pay the interest to the Federal
Reserve, as well as to finance these bonds if the Fed wants to take the
moneys. So, I would say that is not a real debt. It’s a fictitious debt.
It’s a dishonest debt, and that we’re not obligated. So if you don’t
want pay interest for a while to the Fed, or just quit paying, then we
can meet all our other obligations, and people shouldn’t be panicking
that we’re going to default on our debt. |