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have to set a goal of getting the maximum number of votes and setting the goals should be to win. However, the fi rst time I ran for Congress I didn ’ t think much would happen — and not too much happened, but something came of it. I ’ m issue driven and I would think that others lose a lot when they lose a race; they lose everything, because all they want is political power, and that ’ s the least of my goals. So if I win a political race, win a Congressional seat, or win in another offi ce, that ’ s a plus, but I still end up with the satisfaction that I ’ ve introduced a lot of ideas to a group of people.

Q: On a personal level, how is that you came to be a public servant? Was there something that happened in your life?

Ron Paul : It was mainly that I wanted to talk about economic policy. And I thought that after my study in hard money economics and free market economics in the ‘ 60s, and the confi rmation of the breakdown of the monetary system in 1971, that I just was motivated to talk about economic policy without much plans or expectations. A lot more has happened than I ever thought would.

Q: If we don ’ t right this course that we ’ re on, reel in the defi cits, and address this ever - expanding spending, what do you fear could happen?

Ron Paul : Well, the worst thing is that the dollar ’ s value is being eroded systematically every day, and that is since 1913. Since we ’ ve had the Federal Reserve, we have lost about 96 percent of the value of the dollar. If we don ’ t course - correct, we ’ re going to have a crash in the remaining value of the dollar, and you could lose c11.indd 157

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158 The

Interviews

it quickly. When a currency gets up to end stages, it goes quickly.

A lot of people remember what happened in Germany when the German mark lost all its value. When that happens, there ’ s runaway infl ation, no controls, and economic breakdown. This usually invites a dictator — that ’ s what helped usher Hitler into power. So many countries have bitten the dust through infl ation, even in ancient times. They didn ’ t have printing presses, but they would dilute the metal or clip the coins and deceive and steal from the people — things the government shouldn ’ t be doing.

This is a very serious problem and the biggest reality that we have to come to grips with is that we can ’ t afford to pay all these bills, and if we just pay for these bills by printing money, then we ’ ll destroy the currency. And that will be a much, much more painful reaction than us just tightening our belts and living within our means.

Q: Would you say that monetary policy is largely a disincentive to save?

Ron Paul : This system discourages people from saving, because if the money loses value they can ’ t keep up. So it ’ s better they spend the money and get something of value, and borrow the money, and this is what has happened. Too many people depend on borrowing instead of savings. But if you didn ’ t have a Federal Reserve System, it wouldn ’ t work that way because somebody has to produce the credit and the funds in order for people to borrow, and for businesses to borrow — and they create that out of thin air.

But a negative savings rate is very, very detrimental. True capital comes from savings. You should have what you can earn over and above what you have to use to run your business or live on.

This should be savings and that should be used to be loaned out to create more jobs and more wealth. But today, because the dollar loses its value, and then it if earns a little interest then we go ahead and tax people for the interest they ’ ve earned. So if in order to regenerate savings, you should have sound money, get rid of the devaluation of the currency and get rid of all taxes on c11.indd 158

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savings, and then people would go back to savings again. At the same time, we should prohibit the Fed from creating money out of thin air.

Q: In the ‘ 30s one of the ideas that came out of the Roosevelt administration was that our federal debt is a public debt, and therefore