Why You Should Pay Attention To Ron Paul On The National Debt

The popularity of Ron Paul in Republican primaries has been amazing to watch. Whatever you think of him, you need to pay attention to his views on the national debt.

National Debt Plan

I admire and agree with certain Paul views, but significantly disagree with some of his other stances. Unlike any of the other Republican candidates, however, Paul always sticks to his guns and doesn’t change his views based on polls. He is an honest politician, something that is very hard to find these days.

Ron Paul also has an interesting view on the national debt problem. Unlike other candidates and the guy in the White House, Paul provides specific steps he will take to cut the annual deficit to the point we have a balanced budget and can then figure out how to pay the thing off. His plan is to eliminate the Departments of Education, Energy, Interior, Commerce and HUD. He would then also withdraw us from expensive wars in foreign countries and trim the fat from the military budget. This would cut a trillion dollars off the budget the first year alone while maintaining Social Security, Medicare and Veteran Benefits.

The plan is auspicious to say the least. Every voter will undoubtedly find things about it that they love and things about it that they hate. Good. The plan should be a wakeup call for all Americans because it shows what may happen regardless of whether we want it to or not. One only has to look to Greece and now Italy to see how this might play out.

As national debt rises, the risk of a default does as well. The United States will never default on our debt if for no other reason that we can print our own money and buy our own debt. Are you aware that this is exactly what we did the last two years? The biggest buyer of our debt was…the Federal Reserve Bank. Good ole’ Ben.

This does not mean we are out of the woods. When Ben and his boys are creating money out of thin air, they devalue the dollar. Sooner or later, the parties buying our credit are going to want a better rate of return. This means higher interest rates. If rates merely doubled to the 5 percent range, we would pay more money in interest on our national debt than we do to maintain a military. The end result would be a cut back in the military budget and the elimination of numerous government agencies…just like in Paul’s plan.

Politics and slanted media can take any fact and twist it. When it comes to money, however, the facts eventually win out. We now have a national debt level that exceeds our national gross domestic product. Every country that has had this happen in history has seen their economy stagnate and quality of life drop. Until a politician gets serious about cutting the national debt, all other issues are irrelevant.

It would appear that Ron Paul is the only one willing to do so.

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