Ron Paul on Cut, Cap, Balance, Default

In a Saturday interview with NH's SalemPatch:

Well, we have a vote coming up on Tuesday and it's written with a conservative tone to it. We're going to cut some spending and cap spending and we're going to balance the budget. The cut in the spending is $100 billion, which is nothing with a $1.6 trillion defecit. It's for only one year. Capping and making promises doesn't mean a whole lot to anybody anymore because this Congress can't speak for the next Congress.

If you don't get rid of programs and you don't change this attitude that we have to be the policemen for the whole world, the demand will be there to spend the money.

The next thing is that they say this is contingent on having a balanced budget amendment. Well, [how] long does it take us to amend the Constitution? Years! It's nothing but it's being portrayed as the litmus test of whether you're willing to work within the system and prevent our credit rating from going down. If we keep borrowing our credit rating is going to go down, too.

Defaults occur when you don't pay your debt, but if you pay somebody the bill back again with money that has less value, you've defaulted again, too. If the dollar is worth 50 cents on the dollar, then we've defaulted on real value. So the default is ongoing....